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 go much 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 Feb. 7.
Vinco Ventures: Topping the list this week is Vinco Ventures Inc (NASDAQ:BBIG), a consumer products and digital marketing company that merged with TikTok rival Lomotif. The stock, which ranked second on last week’s leaderboard, moves to the top position with 27% of shares short and a cost to borrow of 163%. The short percentage remains in line with last week, but the cost to borrow jumps significantly from 89% last week.
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TSR Inc: Computer programming services company TSR Inc (NASDAQ:TSRI) falls from the top of the list to second place. Short interest in the stock remains elevated at 54.9% of the company’s float. The cost to borrow on shares falls from 103% reported last week to 81%. Total short interest is up 2,100% in the latest report from one month ago.
Biofrontera: Biopharmaceutical company Biofrontera Inc (NASDAQ:BFRI) rejoins the list after spending several weeks on the leaderboard in 2021. Short interest in BFRI shares is 14.6% of the total float. Fintel shows a cost to borrow of 119%. Short interest stands at 1.3 million shares.
Sirius XM Holdings: With a market cap of over $26 billion, Sirius XM Holdings (NASDAQ:SIRI) is one of the larger companies to appear in the Fintel short squeeze leaderboard. The satellite radio and streaming company found itself making headlines recently for adding a Neil Young channel after his exodus from Spotify Technology (NYSE:SPOT). Fintel shows 25.8% of the float short and a cost to borrow of 31.6%.
Cassava Sciences: Biotechnology company Cassava Sciences (NASDAQ:SAVA) has been the target of numerous short reports. The company, which is focusing on treatments for Alzheimer’s Disease, ranks fifth on this week’s short squeeze leaderboard. Fintel shows 35% of the total SAVA float short and a cost to borrow of 56%.
