Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next huge move. GameStop Corp. GME and AMC Entertainment Holdings Inc AMC are two high-profile examples of short squeezes earlier this year.
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 to buy in and cover their position, which has caused shares to go much higher on many occasions.
Fintel Data: Data from Fintel, which requires a subscription, provides a look at some of the top shorted stocks and the data that shows how likely a short squeeze is to happen.
This week’s list of five top short squeeze candidates is similar to last week’s with four of the names remaining the same. The top candidate is new to the top five list this week and is Fintel’s top candidate for a squeeze.
Here is a look at Fintel’s top five short squeeze candidates for the week of Sept. 6.
1. ATIF Holdings: Consulting company ATIF Holdings Ltd ATIF provides financial and advisory services to small and medium-sized businesses. The company also provides advice to Chinese companies that are seeking to list on a U.S. stock exchange.
Fintel shows 26.6% of the company’s float short and a borrow fee of 51.8%. Research shows that short interest in the name has been decreasing.
ATIF shares have moved from $3 to $4 over the last week. The stock is also considered a low float stock with a float of fewer than five million shares, which could make a squeeze move in a hurry.
2. Lightning eMotors: Commercial electric vehicle company Lightning eMotors ZEV went public via SPAC earlier this year. Fintel data shows Lightning eMotors with 34.7% of the company’s float short and a borrow fee of 76.8%.
This follows similar figures from last week of 34.6% short float and 87.1% borrow fee.
ZEV shares traded at $7.73 at the start of last week and are now trading at $9.19 at the time of writing. The stock has steadily been gaining as a top short squeeze candidate.
3. Support.com: After topping the list last week, Support.com SPRT comes in third place this week as a short squeeze candidate. The cloud-based software company has been on the Fintel list for several weeks.
Data shows 66.5% of the float short and a borrow fee rate of 81.4%. Last week’s borrow fee was 102%.
Shares of SPRT went from $37.88 to $22.18 over the last week. The move came after shares surged from $8.75 to $59.69 the previous week. The stock remains a short squeeze story but has likely seen some profit-taking along the way on the big price move.
4. Vinco Ventures: Well-known retail trader stock Vinco Ventures Inc BBIG stays on the list with a short interest percentage float of 28.8%. This comes in higher than last week’s reported 27.2%. The borrow fee rate is 79.7% compared to last week’s 62%.
Shares of BBIG went from $3 to $10 two weeks ago and moved from $9.31 to $8 last week. The increased short percentage and borrow fee could send shares higher this week.
5. Bit Mining Limited: Cryptocurrency mining company Bit Mining Ltd-ADR BTCM comes in fifth place on this week’s Fintel short squeeze candidate list. The company has 17.2% of its float short and a borrow fee of 147%, which is the highest of the top five.
Last week, Bit Mining had 17.9% of its float short and a borrow fee of 146%. The stock continues to see volume raising.
Bit Mining mines Bitcoin BTC/USD and Ethereum ETH/USD and often moves in relation to the price of the top two cryptocurrencies.
Shares of Bit Mining went from $8.09 to $12 over the last week.
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