Potential shorts squeeze plays gained steam in 2021, continued through 2022, and remain a focus of new traders looking for the next huge move.
High short interest and 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 and several stocks to watch this week based on the Fintel short squeeze leaderboard.
1. Getty Images Holdings GETY tops the short squeeze leaderboard for a fourth straight week. Data shows 100.2% of the float short, up from last week’s 87.7% reported. The cost to borrow on shares is 222.4%, up significantly from last week’s 107.2% reported. Getty Images is no stranger to the list, previously topping the leaderboard for four straight weeks in February. Since going public via SPAC merger, Getty Images has been a frequent short-squeeze candidate. Shares of Getty Images spiked last week after Trillium Capital announced an acquisition offer for the company of $10 per share.
2. Guardforce AI Co GFAI is one of several companies benefitting from having AI in their name and stock ticker, with a rush of investors looking for artificial intelligence related stocks. The security solutions company was previously mentioned as a member of Benzinga’s “Stock Whisper Index,” seeing increased interest in the name. The stock moves up two positions to second place on the short squeeze leaderboard. Data shows 20.1% of the float short, up from last week’s 8.1% reported. The cost to borrow on shares is 239.9%, down from last week’s 394.8%.
3. Eloxx Pharmaceuticals ELOX ranks third on the short squeeze leaderboard. The clinical stage biopharmaceutical company has seen shares rise over 180% in the last month, likely leading to the increased short interest. Data shows 13.5% of the float short and a cost to borrow of 37.2%.
4. Bullfrog AI Holdings BFRG is another company that may have benefitted from the rush of investors looking to the artificial intelligence sector. The biotechnology company ranks fourth on the short squeeze leaderboard, moving up 30 positions. Data shows 19.1% of the float short and a cost to borrow of 556.4%. The cost to borrow is the highest of all stocks on the leaderboard.
5. Liminial Biosciences LMNL is a clinical stage biopharmaceutical company that has seen shares rise by over 70% in the last month. The stock moves up 1,687 positions on the leaderboard to rank fifth. Data shows 8.7% of the float short and a cost to borrow of 90.6%.
Related Link: What Is A Short Squeeze?
Stocks to Watch: Outside of the top five short squeeze candidate are several stocks with high short interest or cost to borrows and big moves that investors should monitor.
Kala Pharmaceuticals KALA ranks sixth for the week, falling three positions to move out of the top five candidates. Data shows 10.9% of the float short, down from last week’s 16.3% reported. The cost to borrow on shares is 402.4%, among the highest of all stocks and above last week’s 381.2%.
Biopharmaceutical company PaxMedica Inc PXMD ranks seventh for the week, dropping another spot after several weeks in the top five. Data shows 33.4% of the float short, down from last week’s 34.6%. The cost to borrow of 408.4% is slightly raised from last week’s 405.8%.
Consumer finance company World Acceptance Corp WRLD moves up 21 positions to rank 10th on the list. Data shows 43.5% of the float short and a cost to borrow of 1.3%. With a higher cost to borrow, the stock could move up the list significantly in the future.
Industrial company Huadi International Group HUDI has seen shares soar over 300% in the last month. The stock ranks 15th on the leaderboard, moving up 51 positions. Data shows 7.6% of the float short and a cost to borrow of 167.7%.
Software company and Bitcoin BTC/USD holder MicroStrategy MSTR ranks 19th for the week, moving up 44 positions. Data shows 26.4% of the float short and a cost to borrow of 3.4%. The stock has previously been in the top five candidates and is a popular short target when shares rise. MicroStrategy reports quarterly financial results Monday, which could make the stock more volatile on the week.
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