Sonim Technologies (SONM) Stock Squeezes The Shorts

Sonim Technologies Inc (NASDAQ: SONM) is screaming for the top in the market this morning, but if you’re looking for press releases or SEC filings, you’ll be hard-pressed to find anything. The company hasn’t issued any news. So, what’s the deal?

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Why SONM Stock Is Climbing

Even without news, Sonim Technologies stock was up more than 10% by the closing bell yesterday and looks like it will easily be up more than 20% by the opening bell this morning. So, what’s the deal?

It looks like retail investors are making a concerted effort to push the shorts out of their positions, and they’re doing a great job of it at the moment. 

Prior to the run, Sonim Technologies traded with short interest well into the 30% range. Such heavy short interest is a recipe for a short squeeze, where long investors purchase shares, pushing stock prices up and forcing short sellers to purchase shares to cover their positions. 

That seems to be exactly what we’re seeing out of SONM stock this morning. 

What Is Sonim Technologies

If you’re looking to play the short squeeze game, you’re in luck, that’s exactly what’s happening right now. On the other hand, if you’re thinking about becoming a long-term investor, you’ll want to know more about the company. 

Sonim Technologies’ claim to fame is its development of rugged smartphones. These aren’t the type of phones that break when they’re dropped from a pocket, or in many cases, when they are run over by a car. 

However, it’s worth mentioning that the average person isn’t the target market for these phones. 

Instead, the company targets emergency services, like police officers, EMTs, and even soldiers, as their potential customers, given the rugged nature of their work and the need for reliable smartphone technology in these fields of expertise. 

However, it’s worth mentioning that the company is far from profitability, and that due to the COVID-19 pandemic, revenue has taken a bit of a hit. Nonetheless, it seems as though the company is on a path to recovery. 

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Final Thoughts

Short squeezes and penny stocks aren’t great choices for those that don’t have a healthy appetite for risk. However, they have the potential to yield significant growth. Considering the short squeeze in play at the moment, there’s a good chance that there’s still room for short-term growth. In the long run, the company will need to recover from COVID-19 related blues, but seems to be doing well at that task. All in all, SONM stock is one to watch closely. 

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