5 Short Squeeze Candidates To Watch: SmileDirectClub, Kidpik Join The Leaderboard Vinco Ventures NASDAQ:BBIG, OppFi NYSE:OPFI

Potential short squeeze plays gained steam in 2021, with new retail traders looking for the next huge move. 5 “LME forced to halt nickel trading, cancel deals, after prices top $100,000.” Reuters, March 8, 2022. The LME’s actions led to a significant backlash from market participants, including the commencement of legal proceedings reviews by regulators, and the withdrawal of speculators and other market participants. The LME has been penalized in a very direct manner, with a collapse in market volumes and market participation, as Exhibit 4 shows.

• While the loss is significant, it is important to note that Electrameccanica is a young company that is still in the investment phase.
• To get the timing right, you need to know that a short squeeze might be coming.
• Working with an adviser may come with potential downsides such as payment of fees .
• A possible reason for the high short interest in Canoo is the high volatility and uncertainty surrounding the electric vehicle space.
• In a weekly report released Monday, the data provider Fintel identified five heavily shorted stocks that appear ripe for a short squeeze, especially amid recent surges in trader interest.

We provide access to some of the industry’s most talented and innovative thinkers. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Get relevant tips and viewpoints to help you make smart investment decisions, powered by helpdesk engineer job description the expertise of J.P. For a better experience, download the Chase app for your iPhone or Android. Here are 3 ways you can get fresh, actionable alerts every single day. The company reported top-line growth of 417.65%, with total revenue reaching $1.55 million.

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This can effectively create an upward spiral in which call buying triggers higher stock prices, which results in more call buying and even higher stock prices. The history of German automakers Porsche and Volkswagen had been interlocked for many years, with Porsche owning a minority stake in Volkswagen. Experiencing a dislocation, such as a short squeeze, is a fact of life when you run portfolios for long enough. It highlights the importance of appropriate position sizing, diversification and having an exit strategy when things do not go to plan.

Fintel shows 30% of the company’s float short and a cost to borrow of 32%. Fintel shows institutional fund flows in the stock negative with owners declining and allocations declining as well. The consumer products and digital marketing company merged with TikTok rival Lomotif.

Based on the service model, the same or similar products, accounts and services may vary in their price or fees charged to a client. The bullish catalyst can come from news or from an earnings report, but it can also be foreshadowed by technical indicators. Momentum indicators like RSI, MACD, and stochastics 24 Capital Markets review can be extremely valuable in trying to predict whether and when a short squeeze will develop. If you’re looking for a short squeeze that is not just developing, but imminently occurring, you may want add filters for price change, such as percent change or current price relative to prior highs.

More Scans for Short Sellers

Analysts hold a strong “buy consensus” rating and have set an average price target of $5.50, which would imply 130% upside potential over the next twelve months. Here, we’ll review two stocks that – being heavily bet against by short sellers – may experience a short squeeze in April. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Short squeezes typically result in large price movements, so you can couple your short squeeze scan with an intraday price rise greater than 5% or more. You may need to adjust your short shares cutoffs, since a squeeze will shed short shares once it is underway. Make sure when chasing an active squeeze that you don’t buy in near the end of the squeeze, after which prices may fall as demand slumps.

The Short Squeeze Screener and Leaderboard uses an advanced quantitative model to track companies that have the highest likelihood of experiencing a short squeeze. This is a short squeeze stocks list, or short interest tracker, that can be used as an integral part of your investing or trading research. This model is a proprietary, multi-factor model that uses a number of factors, including Short Interest % Float, Short Borrow Fee Rates, and others. A recent report from Merrill Lynch suggested that, for heavily shorted stocks, a decrease in short interest can signal that investor sentiment is starting to improve. At that point it was assumed that the Global Financial Crisis , playing out at the time, would flow into a collapse in demand for automobiles.

Picks Ripe For A Short Squeeze

Other small and mid-cap electric vehicle manufacturers, such as Workhorse, Arcimoto, and Fisker, also suffer from elevated short interest – each has a ratio of nearly 30%. This trend belies a hard road ahead for EV companies… but it also means their shares best forex brokers with low minimum deposit in 2021 are possible targets for short squeezes. There’s plenty of hope for positive movement on the stock, too. Despite the highly negative view taken by Culper Research, Wall Street, on the whole seems, to believe that ATER is a good long-term investment.

Shares are currently trading at yet another record low, down more than 40% from their initial public offering price and more than 60% below their post-IPO surge. Those savvy speculators seem to have figured out that the timing and pricing of the public offering were both more than a little off. You need to understand that these are speculative trades and that this really isn’t something worth doing all the time. Indeed, if you chose not to take a swing on a short squeeze candidate at all, it wouldn’t be a mistake. Sometimes you just have to deal with the market’s bearish turbulence. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

GME, for example, has lost more than a quarter of its value so far in 2022. Shares in Robinhood Markets (HOOD, $14.40), whose free app became ground zero for meme-stock trading volume, have slumped almost 20%. The Roundhill Meme ETF (MEME, $11.93) is off 15% for the year-to-date. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

What Gamma Squeezes Mean for Investors

BlackRock Inc.’s iShares Silver Trust, the largest exchange-traded product tracking the metal, recorded an unprecedented $944 million net inflow on Friday. Financial), the Austin, Texas-based biotech with a short float of just more than 34%. The company traded as high as $146 in the past year and the investment professionals think it can do even better than that in the next 12 months. One way is to identify companies with a high percentage of their outstanding shares that are short. Actually, there are two measures of “shortness.” There’s the short percentage of the float, which is the percentage of shares available for trading that is currently being held short.

While the company has diversified via acquisition, it picked up Los Angeles-based athletic retailer WSS and Tokyo-based Atmos, these are not big enough to offset lagging sales. Our SIMPLE IRAs, financial education training, and financial consulting allow business owners to scale quicker, cut out wasted time, and increase their bottom line. Okay, okay, we hear you asking, “But what about investing a small amount of cash to avoid bigger risks? ” Yeah, that’s great, and all, and you’re right that it does reduce the risks, but it doesn’t often lead to the best outcomes.

Our views on the market themes to watch.

At that point it was assumed that the global financial crisis , playing out at the time, would flow into a collapse in demand for automobiles. The catalyst for the short squeeze and imbalance occurred in October 2008, when Porsche announced on Sunday, October 26, 2008 that it had accumulated an economic interest of approximately 74% of the stock in Volkswagen. With a fixed shareholding of 20%, due to the ‘Volkswagen Act’ from the German state of Lower Saxony, this meant there was only a free float of 6% of stock available versus 12% short interest held by short sellers. It highlighted a rare but dramatic market dislocation known as a short squeeze. J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC , a registered broker-dealer and investment advisor, memberFINRA and SIPC.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them. MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security. View our full suite of financial calendars and market data tables, all for free. And railroad stocks pay you to own them because of the dividend. Like utility stocks, many of these companies offer stable dividends which, in some cases have increased over time.

However, Electrameccanica also reported a net loss of $20.3 million for the quarter. The company is considered one of the world’s most innovative direct-to-consumer brands. However, things have quieted since then, and the bears circling the stock.

• Aterian has sported a utilization rate of 100% since the beginning of March.
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• “It’s been nuts,” said John Feeney, business development manager at Guardian Vaults in Sydney.
• Following the short squeeze, short positions held by hedge funds subsequently lost billions of dollars of client capital.
• Thanks in part to its targeting by short sellers, GOEV quickly became a meme stock and was repeatedly cited among social media forums as a possible short squeeze target.

Exela, which has risen more than 70% over the past five days, has recently gained meme-stock status. Summer may be in full swing, but the stock market never goes on vacation — nor do the Reddit traders who are constantly on the lookout for new money-making opportunities. Covering some risks, we can bring up the ongoing Russia-Ukraine crisis. An escalation of the conflict into Europe would clearly undermine any optimistic scenario.

• “If this number climbs, it will indicate a higher scarcity of shares and could precipitate a squeeze.”
• Both have Ryan Cohen involved, both are old school retail brand names, both were highly shorted.” said Meade.
• The other useful metric is the short ratio, or days to cover, which Kiplinger says is the number of days of normal trading it would take to generate enough trading volume to buy back all the shares sold short.
• Easily research, trade and manage your investments online all conveniently on Chase.com and on the Chase Mobile app®.

What might make the stock ripe for a short squeeze is that of 11 analysts chiming in, all rate it a buy or strong buy. And they assign it an average target price of $31.50, more than 250% higher than where the stock is now. The stock would have ranked first on the leaderboard if not for the fact that shares have gone down in value over the last week. Fintel notes that a short squeeze and margin calls are less likely when the share price is going down. If shares increase to start the week, PIK could be a strong target for a short squeeze and receive more social media mentions. A short squeeze can occur when a heavily shorted stock rises in value instead of falling.

The stock has a reported short interest of 21% making it susceptible to a squeeze into another leg higher in coal and steel prices. Revenues are expected to increase from $50 million this year to $275 million by 2024. EVgo operates electric vehicle charging stations, owning one of the most extensive networks of public access “fast chargers”. The attraction here is the recognition that the national infrastructure of chargers will need to expand significantly as EV’s across all automobile brands gain market penetration.