September 27, 2016

Could Twitter be experiencing a short squeeze rally

I believe that Twitter could be valued at about $24 to $25 a share in a private transaction.

CNBC's David Faber has annouced that Twitter has received some expressions of interest for a takeover.

Takeover optionality has been an important reason that I put Twitter on my Best Ideas List at $14.60 in June.

As there is no assurance of a deal, I have sold the balance of my Twitter long at $22.50.

It should be noted that more than 50 million shares of Twitter are short. I suspect we are experiencing a short squeeze that could be exaggerating the upside move.