I told you this weekend via twitter (if you haven’t followed me yet, what they heck are you waiting for?) that I was working on a couple of new screens, and here is my first of the two to be unveiled this week: The Short Squeeze!
Below are a list of small-cap stocks that have been heavily shorted by the street, and should the market or the individual stock start rallying, could really see its share price launch into the stratosphere because of the bears being forced to cover their short positions in the stock. No joke, based on some of the number of shares that are being borrowed, for some of these stocks, it could take as many as 50 days to cover all the shares held short in the stock.
If you don’t know what a short squeeze is, it is where a stock starts to rise rapidly, and as the trend continues to escalate, the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.
One stock that looks pretty interesting to me, for instance, is Banner Corp. (BANR), which over the past couple of days has seen an unusual amount of volume pouring into it as well as a rising share price. Furthermore, you’re not likely to find shares of this stock available to short. Now, while the bears might be right on their bearish outlook on a number of these stocks, for the ones that they are wrong on, they are going to be VERY VERY WRONG. So do your due diligence, and find the ones that the street, in your opinion, seems to be totally wrong on, and let it rip!
Click Here to See the 30 Stocks Ready for a Short Squeeze.
