5 Short Squeeze Candidates To Watch This Week: Redbox Tops List With High Short Float Percentage, Camping World Joins Leaderboard And More

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 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 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 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 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 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.