Potential short squeeze plays gained steam in 2021, with new retail traders looking for the next huge move.
A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.
A squeeze can occur when short sellers are forced into buying to cover their position, which can cause shares to move up higher on many occasions.
Fintel Data: Data from Fintel, which requires a subscription, provides a look at several of the top shorted stocks and data on how likely a short squeeze is to occur.
Here’s a look at Fintel’s top five short squeeze candidates for the week of Mar. 14.
Indonesia Energy Corp: Oil and gas exploration company Indonesia Energy Corp (AMEX:INDO) rejoins the leaderboard and tops the list for the week. Fintel shows short interest up 432% in the recent month and a total of 80% of the company’s float now short. The cost to borrow on Indonesia Energy Corp shares is 771%, one of the highest on record. In February, when Indonesia Energy was third on the leaderboard, a reported 14.5% of the total float was short.
Enservco Corp: Oil and gas services company Enservco Corp (AMEX:ENSV) joins the short squeeze leaderboard in second place. The stock was outside the top 50 names a week ago. Short interest is up 414% over the last month. Thirty-two percent of Enservco Corp’s float is now short, according to Fintel. The cost to borrow on Enservco shares is 245%.
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Imperial Petroleum: International shipping transportation company Imperial Petroleum (NYSE:IMPP) ranks third on the Fintel leaderboard. Short interest in Imperial Petroleum was up 1,500% in the latest month report. Fintel shows 46.9% of the company’s float short. The cost to borrow on Imperial Petroleum shares stands at 164.9%.
AppHarvest: Indoor farming company AppHarvest Inc (NASDAQ:APPH) is the lone carryover from last week’s top five short squeeze candidates. Short interest is 23.2% of shares, slightly elevated from last week’s 23% when AppHarvest was third on the leaderboard. The cost to borrow on shares is 50.3%, down from the prior report’s 60%.
AST SpaceMobile: Space communications company AST SpaceMobile (NASDAQ:ASTS) ranks fifth on the leaderboard, moving up from 18th the week before. Fintel shows 17.7% of the company’s float short and a cost to borrow of 38.8%. Shares of AST SpaceMobile rocketed higher last week on a new launch partnership signed with SpaceX.
