Tech investor Paul Meeks: This heavily shorted wearable stock may be in for a 'dead cat bounce'

James Park, CEO of Fitbit.
Morgan Brasfield | CNBC

There might be an investing opportunity in Fitbit. This stock has been crushed. Fitbit on Friday traded at about $7. In August 2015 it was trading at almost $50.

Although there's no doubt the company is in trouble, it may have gotten oversold, which makes it a candidate for at least a meaningful "dead cat bounce." The shares are so discounted that if the company ever does anything right again, they'll uncoil this loaded spring.

What's weighing on Fitbit is that the rate of growth for the wearables category is slowing. Here's what eMarketer, a data research company, forecasts for the U.S. wearables industry in the next few years: