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 May 9.
Redbox Entertainment: Movie rental and streaming company Redbox Entertainment (NASDAQ:RDBX), which went public via SPAC merger, tops this week’s short squeeze leaderboard. Fintel data shows 61.6% of the company’s float short and the cost to borrow on shares at 597%. Shares of Redbox Entertainment were trading around $2 a month ago before going on a short run that saw shares top the $10 level in early May. Shares trade at $6.11 at the time of writing.
Medavail Holdings: Telehealth enabled pharmacy company Medavail Holdings (NASDAQ:MDVL) ranks second on the leaderboard for the week. Fintel shows 21.9% of the total float short, an increase of 536% over the last month. The cost to borrow on shares of Medavail sits at 98%.
Related Link: DVD Rental Company Redbox Going Public Again In SPAC Merger: What Investors Should Know
Harbor Custom Development: Last week’s second place ranker Harbor Custom Development (NASDAQ:HCDI) falls one spot to third. The real estate development company has 23.9% of its float short, in line with last week’s number. The cost to borrow on shares of Harbor Custom Development rises from 37.6% to 107.3% from the previous week.
Lixte Biotechnology Holdings: Biotechnology company Lixte Biotech Holdings Inc (NASDAQ:LIXT) remains in fourth place on the leaderboard. Fintel data shows 23.7% of the total float short, in line with last week’s figure. The cost to borrow on shares falls slightly from 94.7% to 88.7% for the week. Short interest in the stock was up over 11,000% in the latest report.
Camping World Holdings: The billion dollar valued recreational vehicle retailer and product company Camping World Holdings (NYSE:CWH) joins the Fintel leaderboard. Data shows that 46.8% of the total float for Camping World Holdings is short. The cost to borrow on shares is 20.8%, a low figure compared to the rest of the leaderboard.
