Potential short squeeze plays gained steam in 2021 and continued through 2022, with new 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 on many occasions.
Fintel Data, which requires a subscription, provides a look at several of the top shorted stocks and how likely a short squeeze is to occur.
Here’s a look at the top five short squeeze candidates for the week of Aug. 22.
Singing Machine Company: Karaoke audio equipment company The Singing Machine Company MICS tops the short squeeze leaderboard, a position it previously topped in July. The company ranked third in last week’s report. Fintel data shows 26.7% of the float short and a cost to borrow of 100.9%.
Revlon Inc: Cosmetics company Revlon Inc REV jumps 27 places on the leaderboard to second place. The company, which declared bankruptcy in June, has been a popular stock for retail traders and also attracted heavy short interest due to bankruptcy and credit concerns. Data shows 36.6% of the float short and a cost to borrow of 101.8%.
U.S. Well Services: Oil company U.S. Well Services USWS falls one position to third place from last week’s short squeeze leaderboard. The stock moved up 425 positions previously. Data shows 46.9% of the float short, down from last week’s 51.4%. The cost to borrow shares is 16.6%, down from last week’s 20.4%.
Hour Loop: E-commerce company Hour Loop Inc HOUR moves up one position to fourth place on the leaderboard, with multiple consecutive weeks in the top five. Data shows 17.5% of the float short, in line with last week’s report. The cost to borrow shares is 55.2%, down from last week’s 57.6%.
Greenwich LifeSciences: Clinical stage biopharmaceutical company Greenwich Lifesciences Inc GLSI moves up 27 positions to rank fifth for the week. Data shows 31.7% of the float short and a cost to borrow of 11.6%.
5 Stocks to Watch: Outdoor cooking company Weber Inc WEBR ranks seventh in the latest short squeeze leaderboard, moving up 49 positions. Data shows 55.2% of the float short and a cost to borrow of 43%. The company has been singled out as one of the potential short squeeze plays by a former hedge fund manager and seen increased discussions on social media.
Clinical stage biopharmaceutical company HilleVax HLVX moved up 309 positions to ninth place on the leaderboard, one of the biggest increases. Data shows 7.2% of the float short and a cost to borrow of 17.4%.
Indonesia Energy Corp INDO has previously been in the top five of the short squeeze leaderboard and could return soon. The oil exploration company has 12.7% of its float short and a cost to borrow of 138.1%.
Self-driving truck technology company Embark Technology EMBK moved up 3,999 positions on the leaderboard to 15th place. Data shows 29.2% of the float short and a cost to borrow of 7.9%. The company recently had a 1-for-20 reverse stock split.
Pre-clinical biotechnology company Comera Life Sciences Holdings CMRA moves up 21 places to 16th place on the leaderboard. The stock has one of the highest cost to borrows at 201.3%. Data shows 12.1% of the float short as well.
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