Tootsie Roll gains 6% as short squeeze action outruns underlying valuation
Jan. 29, 2021 8:15 AM ETTootsie Roll Industries, Inc. (TR)By: Clark Schultz, SA News Editor
Jan. 29, 2021 8:15 AM ETTootsie Roll Industries, Inc. (TR)By: Clark Schultz, SA News Editor
- Shares of Tootsie Roll (NYSE:TR) are up 5.72% in premarket action to $41.00 as the volatile trading in the highly-shorted stock continues.
- Tootsie Roll is up 30.57% YTD and 17.10% over the last 52 weeks as shorts have yet to see the downside destruction they have been betting on for an extended period of time.
- Seeking Alpha author Patrick Doyle say he likes Tootsie Roll's wonderful business and sustainable dividend, but leaves some pretty clear advice for shareholders.
- "I think Tootsie Roll is too expensive at $43 per share. For that reason, I’ll be selling my shares. Just because I don’t think there’s value at $43 doesn't mean there’s no value here. I’d be happy to buy back in at $26, and the options market thankfully offers me the opportunity to potentially do just that," he writes.