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 go much 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 Feb. 7.
Vinco Ventures: Topping the list this week is Vinco Ventures Inc BBIG, a consumer products and digital marketing company that merged with TikTok rival Lomotif. The stock, which ranked second on last week’s leaderboard, moves to the top position with 27% of shares short and a cost to borrow of 163%. The short percentage remains in line with last week, but the cost to borrow jumps significantly from 89% last week.
TSR Inc: Computer programming services company TSR Inc TSRI falls from the top of the list to second place. Short interest in the stock remains elevated at 54.9% of the company’s float. The cost to borrow on shares falls from 103% reported last week to 81%. Total short interest is up 2,100% in the latest report from one month ago.
Biofrontera: Biopharmaceutical company Biofrontera Inc BFRI rejoins the list after spending several weeks on the leaderboard in 2021. Short interest in BFRI shares is 14.6% of the total float. Fintel shows a cost to borrow of 119%. Short interest stands at 1.3 million shares.
Sirius XM Holdings: With a market cap of over $26 billion, Sirius XM Holdings SIRI is one of the larger companies to appear in the Fintel short squeeze leaderboard. The satellite radio and streaming company found itself making headlines recently for adding a Neil Young channel after his exodus from Spotify Technology SPOT. Fintel shows 25.8% of the float short and a cost to borrow of 31.6%.
Cassava Sciences: Biotechnology company Cassava Sciences SAVA has been the target of numerous short reports. The company, which is focusing on treatments for Alzheimer’s Disease, ranks fifth on this week’s short squeeze leaderboard. Fintel shows 35% of the total SAVA float short and a cost to borrow of 56%.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.