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 move up 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 Mar. 21.
Indonesia Energy Corp: Oil and gas exploration company Indonesia Energy Corp INDO tops the short squeeze leaderboard for the second straight week. Short interest in the stock is 80% of the float and has increased 432% over the last month. Fintel shows a cost to borrow of 379%, which is down from last week’s potential record 771%. This continues to be one of the highest shorted stocks and highest cost to borrows on record for a stock.
Enservco Corp: Oil and gas services company Enservco Corp ENSV is second on the leaderboard for the second straight week. Short interest in the stock is up 414% over the last week. The report shows 32% of the total float currently short. The cost to borrow of 205% is down from last week’s 245%, but remains one of the highest on the short squeeze leaderboard.
Imperial Petroleum: International shipping transportation company Imperial Petroleum IMPP is in third place on the Fintel short squeeze leaderboard for the second straight week. The report shows 32.9% of the float short, down from last week’s 46.9%. The cost to borrow on shares is 108%, down from last week’s 164.9%
Cyren Ltd: Cybersecurity company Cyren Ltd CYRN is the newcomer on the short squeeze leaderboard for the week, ranking fourth. The stock ranked sixth last week, falling just outside of the top five names. Short interest is 17.6% of the company’s float. The cost to borrow on Cyren shares is 372%, one of the highest for the week.
AST SpaceMobile: Space communications company AST SpaceMobile ASTS ranks fifth for the second straight week after ranking 18th two weeks ago on the leaderboard. The report shows 17.7% of the company’s tradeable float short. The cost to borrow for AST SpaceMobile shares is 39.1%, up from last week’s 38.8%.
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