For the next post, fasten your seatbelts!
Many phenomena occur in the stock market, some of them very aggressive, and every professional trader must know how to profit from them.
And today: the 'short squeeze' corner!
The following stocks have surged in the past month due to positive reports, and as a result, a very high volume of short positions has been opened on them, plus a high 'cost to borrow for shorting': an excellent combination for a short squeeze.
Due to the aforementioned conditions, the smallest announcement from them could lead to an aggressive short squeeze.
Here are 4 companies that appeared on our radar a few days ago:
$AVCT, a technology company in cloud services: market cap - $217 million. The company has 21 million tradable shares.
Following several positive news items from the company during December, the company made a triple-digit move.
Short interest: 30%. Cost to short: 150%.
$RELI, an insurance company: market cap - $79 million. The company has 11 million tradable shares.
Due to agreements to use their platform in 8 additional US states and the acquisition of a health insurance company, the stock more than tripled during December.
Short interest: 69%. Cost to short: 95%.
$PTPI, a pharmaceutical company: market cap - $53 million. The company has 8 million tradable shares.
The company reported a positive response to its pharmaceutical product, and therefore surged by tens of percent during December.
Short interest: 25%. Cost to short: 150%.
$EFOI, a company manufacturing special lighting products: market cap - $20 million. The company has 5 million tradable shares.
The company announced the development of special lamps that purify the air from bacteria (including coronavirus bacteria), and therefore surged by over 100%.
Short interest: 18%. Cost to short: 100%.
Entered our watchlist...
For experienced traders only!
Nothing stated herein is a recommendation, it is personal opinion only. Anyone using this information does so at their own discretion and personal responsibility only.