Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next GameStop Corp GME or AMC Entertainment Holdings Inc AMC.
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 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 Nov. 15.
Huadi International: Small cap Huadi International Group HUDI is a manufacturer of stainless steel pipes and tubes, used by numerous industries. Shares were trading under $4 to start October before running up over $28 on news of a contract award with an unnamed customer.
Fintel shows 21.8% of HUDI float shorted and a borrow cost of 172%. This borrow cost is one of the highest on record right now, according to Fintel.
Progenity: After topping the list for four straight weeks, biotech company Progenity Inc PROG comes in second place for the week of Nov. 15. Fintel shows 34% of the company’s float short and a borrow rate of 85.7% for PROG shares. Volume has fallen in the stock and shares are stuck in a range of $3 to $3.50 according to Fintel. The options market is showing a bullish bet on PROG shares with a put/call ratio of 0.19.
Altimeter Group Corp: SPAC Altimeter Group Corp AGC rejoins the list after its merger partner Grab reported third-quarter results last week. Short interest is up 13% in AGC and stands at 38.8% of the company’s total float. Fintel shows a borrow rate of 24.8%. on AGC shares. Option traders remain bullish on AGC with a put/call ratio of 0.56.
Bit Digital: Bitcoin BTC/USD miner Bit Digital BTBT rejoins the Fintel short squeeze leaderboard with a fourth-place ranking. Fintel shows 8.5 million shares short, which is down from the previous week. Bit Digital has 20.5% of its float short and a cost to borrow of 114%, one of the week’s highest.
Synapotogenix: Biotechnology company Synaptogenix SNPX ranks fifth on the Fintel leaderboard for the week. Around 25% of Synaptogenix shares are float and the company has a small float of around six million shares. Short interest has risen 87% in the last month. Fintel shows a cost to borrow at 13.2%, which is lower than others on the leaderboard.
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