Potential short squeeze plays gained steam in 2021 and continued through 2022, with new 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 on many occasions.
Fintel Data, which requires a subscription, provides a look at several of the top shorted stocks and how likely a short squeeze is to occur.
Here’s a look at the top five short squeeze candidates for the week of Aug. 22.
Singing Machine Company: Karaoke audio equipment company The Singing Machine Company (NASDAQ:MICS) tops the short squeeze leaderboard, a position it previously topped in July. The company ranked third in last week’s report. Fintel data shows 26.7% of the float short and a cost to borrow of 100.9%.
Revlon Inc: Cosmetics company Revlon Inc (NYSE:REV) jumps 27 places on the leaderboard to second place. The company, which declared bankruptcy in June, has been a popular stock for retail traders and also attracted heavy short interest due to bankruptcy and credit concerns. Data shows 36.6% of the float short and a cost to borrow of 101.8%.
U.S. Well Services: Oil company U.S. Well Services (NASDAQ:USWS) falls one position to third place from last week’s short squeeze leaderboard. The stock moved up 425 positions previously. Data shows 46.9% of the float short, down from last week’s 51.4%. The cost to borrow shares is 16.6%, down from last week’s 20.4%.
Hour Loop: E-commerce company Hour Loop Inc (NASDAQ:HOUR) moves up one position to fourth place on the leaderboard, with multiple consecutive weeks in the top five. Data shows 17.5% of the float short, in line with last week’s report. The cost to borrow shares is 55.2%, down from last week’s 57.6%.
Greenwich LifeSciences: Clinical stage biopharmaceutical company Greenwich Lifesciences Inc (NASDAQ:GLSI) moves up 27 positions to rank fifth for the week. Data shows 31.7% of the float short and a cost to borrow of 11.6%.
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5 Stocks to Watch: Outdoor cooking company Weber Inc (NYSE:WEBR) ranks seventh in the latest short squeeze leaderboard, moving up 49 positions. Data shows 55.2% of the float short and a cost to borrow of 43%. The company has been singled out as one of the potential short squeeze plays by a former hedge fund manager and seen increased discussions on social media.
Clinical stage biopharmaceutical company HilleVax (NASDAQ:HLVX) moved up 309 positions to ninth place on the leaderboard, one of the biggest increases. Data shows 7.2% of the float short and a cost to borrow of 17.4%.
Indonesia Energy Corp (NYSE:INDO) has previously been in the top five of the short squeeze leaderboard and could return soon. The oil exploration company has 12.7% of its float short and a cost to borrow of 138.1%.
Self-driving truck technology company Embark Technology (NASDAQ:EMBK) moved up 3,999 positions on the leaderboard to 15th place. Data shows 29.2% of the float short and a cost to borrow of 7.9%. The company recently had a 1-for-20 reverse stock split.
Pre-clinical biotechnology company Comera Life Sciences Holdings (NASDAQ:CMRA) moves up 21 places to 16th place on the leaderboard. The stock has one of the highest cost to borrows at 201.3%. Data shows 12.1% of the float short as well.
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