Central European Distribution Up Nearly 20% on Heavy Volume; Potential Short Squeeze

The Central European Distribution Corporation (Nasdaq: CEDC) has fallen over 80% this year, but is popping almost 20% today on a short squeeze. It opened at $3.04 this morning, and has spiked in the last hour to $3.76 before losing some of its ground, back to $3.64.

CEDC is a Polish company and the largest distributor of spirits in Eastern Europe. After being downgraded last week by Deutsche Bank (NYSE: DB) from buy to hold, the stock was driven down to around $3 a share, a far cry from $7 in mid-October and $25 at the start of the year. According to Peter Chu, of the Financial News Network, the analysts' average price target is $5.88, meaning there could be more upside in this name.