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 April 18.
Aterian: Consumer products company Aterian ATER tops the Fintel short squeeze leaderboard for the second straight week. Fintel shows short interest at 34.8% of the company’s total float, up from last week’s 31.9% reported. The cost to borrow on shares is 109.7%, up from last week’s 61.5% reported. A rising short interest and cost to borrow has elevated this popular short squeeze candidate for the week.
Newegg: Ecommerce company Newegg Commerce Inc NEGG remains in second place on the leaderboard for the second straight week. The report shows 31.7% of the tradeable float short, up from last week’s 23.4% reported. The cost to borrow on Newegg shares is 69.2%, down from last week’s 110%.
Entrada Therapeutics: Biopharmaceutical company Entrada Therapeutics TRDA comes in third place on this week’s short squeeze leaderboard. Fintel shows 22.4% of the float short and a cost to borrow of 58.4%.
Beam Global: Electric vehicle charging technology company Beam Global BEEM has a short interest of 30.2%. The cost to borrow for shares is 73.7%. The company has been moving up the short squeeze leaderboard in recent weeks, with several appearances in the top ten.
Clever Leaves: Pharmaceutical and consumer cannabis company Clever Leaves Holdings CLVR ranks fifth for the week. The company operates in Canada, Colombia, Germany, Portugal and the United States. Fintel shows 16.5% of the company’s float short and a cost to borrow of 41%. Short interest was up 204% in the most recent report. Shares of Clever Leaves have been volatile and actively traded in recent weeks based on news of congressional legislation on federal legalization.
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