The short squeezing of so-called meme stocks has played out multiple times in 2021 as day traders on social-media sites like Reddit and TikTok band together to buy the same name. That, in turn, puts pressure on short sellers to close positions by purchasing shares, which pushes a stock even higher in the process. This progress has also earned the company umarkets scam some bullish attention from analysts. Aegis and Maxim have both gotten behind Enviric with Buy ratings this summer. Maxim’s current price target is $6, while Aegis has a $7 target. As far as potential short squeezes go, ENVB stock is on the lower end of “high short interest stocks.” In this case, most data shows a short float percentage of around 14%.
Its financials are absolutely abysmal and have demonstrated no sign of improvement since going public. It averages about $4 million a quarter in revenue with over -100% gross margins and a burn rate of about $20 million a quarter. Its balance sheet as of September 2022 shows a little over in $3 million in cash with a working capital deficit of $34 million and $19 million in long-term debt. If there are shorts jumping over the moon to short HLBZ, it’s because they think the company is on a high-speed train to insolvency or heavy dilution. Today I’m going a step further by presenting not only the most heavily shorted stocks but also five of my top picks from the group poised for a short squeeze. We’re only considering stocks with a current market cap above $250 million.
Short Squeeze Stocks Alert: 5 Hot Stocks With HIGH Cost to Borrow Fees
A company generally reaches meme-stock status once there’s enough chatter on forums like Reddit’s WallStreetBets and Stocktwits. The companies in the table above don’t appear to be in any such danger. But each possesses a proven business model with entrenched competitive advantages. Compared to rival Hertz Global Holdings , CAR has a larger proportion of business outside the United States which is now benefiting from the weakening U.S. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
- As one of the world’s largest car rental companies, a challenge for Avis Budget Group in 2022 was the period of record-high gasoline prices that pressured demand by keeping drivers off the road.
- With CAKE already trading near a 1-year high, levels from 2021 above $50 can be a good first upside target.
- Regarding short float percentages on TRKA, it doesn’t have the highest, but the figure has come to light.
- The company also made headlines before the New Year after reporting that it plans to deliver its FF 91 EV before the end of April.
- This can drive stock prices even higher as short covering joins retail buying creating a snowball effect at times.
A short squeeze often feeds on itself, sending the asset’s trading price even higher and forcing more short sellers to cover their positions. Another one of the penny stocks with higher short interest is Amyris Inc. The company recently presented at the JP Morgan Health Care Conference as investors focused on its Lab-to-Market technology platform. Amyris has been transitioning into more retail-centric verticals, including health & beauty, as well as flavors and fragrances. The company has said its ingredients are included in over 20,000 products from the world’s top brands.
A meme stock is a kind of cult stock where investors are buying it well beyond its fair value, but they might not even care about the company’s long-term future. They are in the stock for reasons beyond traditional investing, such as trying to create a short squeeze or invoke a change in the way the markets function. The short squeeze ideas I like have a combination of not only a high short interest but also a fundamental angle with room for a more sustained turnaround to fundamentals, and surprising expectations to the upside. A short squeeze happens when investors who have shorted a stock are forced to buy shares to cover their positions.
If the stock was to more than double on short squeeze speculation, a revenue multiple of over 4 would be stretching the valuation. Meme stocks are meant to be the opposite of value stocks, yet GNS is one that currently trades at a reasonable valuation, even after its massive run. An investor could view its fundamental value as a fail-safe in case the short squeeze thesis doesn’t pan out. MicroStrategy moves up one position on the leaderboard to fourth place. Data shows 36.5% of the float short and a cost to borrow of 38.8%. More recently, this week has seen countless oil and gas, carbon capture, and even alternative energy stocks climb.
With CAKE already trading near a 1-year high, levels from 2021 above $50 can be a good first upside target. A high-short interest can also imply there is some underlying skepticism of a company’s business model over the long run. Many biotech firms fall into this category, sometimes dependent on a drug still in development that may or may not ever reach the market.
With a higher short float percentage and considering it’s one of the penny stocks under $1 right now, it could be one to watch. On the more traditional side of biotechnology, Progenity has also come onto this list of short squeeze stocks. Most outlets show PROG stock short float percentage over 40% right now, which is high by any account. It also has a relatively lower float in comparison to some of the other names on this list. “BLIN has a borrow fee rate of 135%, which is extraordinary,”Risenhoover said. “Its Short Interest % of float is just 7%, which is not. Should the short interest increase or the price and volume continue to climb, we could see margin calls and a short squeeze.”
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No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. An indication of interest to purchase securities involves no obligation or commitment of any kind. As one of the world’s largest car rental companies, a challenge for Avis Budget Group in 2022 was the period of record-high gasoline prices that pressured demand by keeping drivers off the road. The company also dealt with shortages of vehicles amid global supply chain issues. That’s not to suggest, however, that a short squeeze candidate can’t be a stock worth owning for the long haul. Plenty of great publicly traded companies — particularly young ones — see their shares occasionally targeted by short-sellers looking to make a quick, easy buck.
That level of volume indicates to me that something unusual is going on with this stock and the company is probably justified in opening an investigation. But recognizing that something unusual is going on is just the first step. In order for a short squeeze theory to be successful, there needs to be a competent management team that knows how to go about capturing the opportunity.
List Of Penny Stocks To Watch
This stock’s prospects are compelling because the company’s capitalizing on an opportunity with real staying power. As is usually the case, time will do most of whatever heavy lifting there is to be done here. Reliable dividend payers aren’t frequent targets of short sellers, partially because they are less erratic, but also because any dividends received while the shares are short must be repaid to the lender . That slow but steady upward march has gradually shaken out many of the short sellers over time. While the activity on social media is nice and the float holds high potential for a squeeze, it will be all for naught if the company can’t get a handle on the next issue.
This is what Matthew Cooper, Ph.D., chief scientific officer of Progenity, explained earlier this month. Unlike Enveric, Progenity is developing products for molecular testing. The company has worked on advancing things like its PreecludiaTM test to rule out preeclampsia in pregnant patients. A recent study demonstrated that Preecludia could “significantly distinguish” saxo bank forex broker between the presence and absence of preeclampsia. Furthermore, this month Progenity was granted a patent for its preeclampsia rule-out test. Detailed below are Fintel’s five picks for near-term short-squeeze candidates for the week of July 18, ranked by the firm’s proprietary “Short Squeeze Score,” for which 100 reflects maximum potential for a squeeze.
Similar to PROG, AEI stock shows a percentage float short figure on the higher end of the spectrum. According to the company, this test is expected to target an addressable market of up to $3 billion annually. With a patent granted, this could help open opportunities for partnerships and additional commercialization opportunities.
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Fundamentals don’t support a higher price but they don’t preclude it either
Disregarding the highly shorted stocks down moderately, where there were only six returns, the best performing group were those highly shorted but positive in the year prior. Those stocks gained 0.58% on average, with 57% beating the SPX. In a weekly report released Monday, the data provider Fintel identified five heavily shorted stocks that appear ripe for a short squeeze, especially amid recent surges in trader interest.
Typical revenue multiples for growth companies in the education space range between 2-4x. With an $80 million market cap as of Friday’s close, GNS is trading at about a 2.2x revenue multiple. I find that to be reasonable given the company’s smaller status and cash flow negative operations.
“Like the other candidates, VRPX has had a significant increase in trading volume and price action, which could precipitate a short squeeze.” A risk-off mood entered the wider stock market on Monday as investors weighed the impact of COVID-19 variants on the global economic recovery. But conditions are lining up for some select stocks to be pushed higher this week via short squeeze, according to a report from the data provider Fintel. Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of (“Regulation A”).