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 4.
Guardforce AI: Security solutions company Guardforce AI (NASDAQ: GFAI) moves up to top the leaderboard after ranking second in last week’s list. Short interest is up 504% from the previous week and a total of 38% of the float is short. Fintel shows a cost to borrow on shares of 171%, down from last week’s 239%, but still extremely elevated.
Nine Energy Service: Oil and gas services company Nine Energy Service Inc (NYSE: NINE) moves up one place on the leaderboard, from third place to second place. Short interest is up 92% in Nine Energy shares over the last month. Fintel shows 21.7% of the float short and a cost to borrow of 74.1%.
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Newegg Commerce: Ecommerce company Newegg Commerce Inc (NASDAQ: NEGG) is no stranger to the short squeeze leaderboard as it spent some time in the top five in late 2021. The company, which sells computers, computer accessories, gaming products and other technology related items, rejoins the leaderboard in the third place position. Short interest in Newegg sits at 23.4% and the cost to borrow is 30.8%.
Enservco Corp: Oil and gas services company Enservco Corp (AMEX:ENSV) falls down to fourth place after topping last week’s leaderboard. Short interest in Enservco is up 316% in the last month. Fintel shows 30% of the float short, in line with last week’s figure. The cost to borrow on shares has fallen over the weeks, hitting 135% for the week, versus prior highs of 171%, 205% and 245%.
Beem Global: Electric vehicle charging company Beem Global (NASDAQ: BEEM) ranks fifth on the short squeeze leaderboard. Fintel shows 37.8% of the float short and a cost to borrow of 213%. Short interest in the company was up only 4% in the previous report. Shares have gone from $14 to $22 in the last month and could see increased short interest in the next report.
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