Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next GameStop Corp. GME and AMC Entertainment Holdings Inc AMC, two stocks that attracted strong interest and saw shares spike.
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.
Fintel Data: Data from Fintel, which requires a subscription, provides a look at some of the top shorted stocks and data that shows how likely a short squeeze is to happen.
Here is a look at Fintel’s top five short squeeze candidates for the week of Oct. 11.
ReShape Lifesciences: Small-cap ReShape Lifesciences RSLS tops the list from Fintel with a score of 96.61. The borrow fee rate on RSLS shares is 66.6%. The company also has 10.2% of its float shorted. Short interest has risen in recent weeks.
The company provides minimally invasive medical devices to treat obesity, including the LAP-BAND.
Reshape Lifesciences has a market cap of less than $50 million and shares under $3, which could make it a favorite of retail traders.
Cellect Biotechnology: Last week’s number-three short squeeze candidate moves up a position with Cellect Biotechnology Ltd -ADR APOP coming in second place in Fintel’s rankings.
Cellect is a small biotechnology company focusing on regenerative medicines and cell therapies.
The borrow fee on APOP shares is 103.7%, the highest of the top five Fintel short-squeeze candidates. The borrow fee on APOP shares was 102.9% last week. Short interest in APOP remained steady with 30.6% of the float traded short.
Bit Digital: Cryptocurrency miner Bit Digital BTBT rejoins the Fintel top five short squeeze candidate list after not appearing last week.
The company has a borrow fee of 89.9% and sees 18.7% of its float short. Fintel notes that the borrow fee has risen substantially going from 23% at the end of September to nearly 90% for the current week.
Biomerica: Medical company Biomerica, Inc. BMRA falls from first to fourth in this week’s short squeeze candidate list from Fintel. The company has a borrow fee of 12.8% for this week, down significantly from last week’s 46.1 borrow fee.
Short interest for Biomerica was 9.3% of the company’s free float, the lowest of the five stocks topping the Fintel list.
Camber Energy: Oil and gas company Camber Energy Inc CEI rejoins the Fintel top five list with a score of 93.62. Short interest in the company increased 585% to 24.5 million shares over the last two weeks. The company was in the spotlight recently with a new short report from Kerrisdale Capital.
Over the last month, CEI shares have gone from $1.50 to a high of $4.85. Shares dipped below $1 on news of the new short report.
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