Potential short squeeze plays gained steam in 2021 and continued through 2022, with new traders looking for the next huge move.
High short interest and a high cost to borrow are among the common traits that could lead to a short squeeze.
Here’s a look at the top five short squeeze candidates this week based on the Fintel short squeeze leaderboard and some other stocks to watch moving up the list.
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Kala Phamaceuticals KALA: Clinical stage biopharmaceutical company Kala tops the leaderboard for the second straight week. Data shows 36.9% of the float short, up from last week’s 36.3% figure. The cost to borrow on shares is 288%, down from last week’s 378.2%. Shares of the Watertown, Massachusetts-based company recently soared after the FDA accepted its investigational new drug application.
PaxMedica Inc PXMD: The Tarrytown, New York-based biopharmaceutical company moves up one position to second place for this week’s short squeeze leaderboard. Data shows 30.5% of the float short, in line with last week’s figure. The cost to borrow on shares is 810.9% this week, up from last week’s 660% and one of the highest seen in recent weeks.
Getty Images Holdings GETY: The content creator and image marketplace company has been a frequent short squeeze candidate since going public via SPAC merger. The stock moves down one position on the leaderboard to third place. Data shows 100% of the float short and a cost to borrow of 141.8%, both figures similar to last week’s 99.9% and 141.8% respectively.
MicroStrategy Inc MSTR: The Tysons, Virginia-based software company is a frequent target of short sellers due to its high exposure to leading cryptocurrency Bitcoin BTC/USD. MicroStrategy moves up one position on the leaderboard to fourth place. Data shows 36.5% of the float short and a cost to borrow of 38.8%.
Avalon GloboCare Corp ALBT: The healthcare management company ranks fifth on this week’s short squeeze leaderboard, moving down one position from last week. Data shows 18.3% of the float short and a cost to borrow of 15.2%.
Stocks to Watch: The five candidates listed above were all the same from the previous week’s leaderboard, with some slight changes to the order. Here are several other stocks to watch making big moves up the leaderboard that could crack the top five in the coming weeks.
Professional Diversity Network IPDN: Short interest is 7.7% of float and a cost to borrow of 13.1%. The stock moves up 57 positions to rank seventh place for the week.
Huadi International Group HUDI: Short interest of 9.9% and a cost to borrow of 88.1%. Stock moves up 40 positions to rank 11th for the week.
Kura Sushi KRUS: Short interest of 27.9% of the float and a cost to borrow of 3.1%. The stock moves up 50 positions to rank 16th for the week.
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