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 June 6.
Cassava Sciences: No stranger to the short squeeze leaderboard, biotechnology company Cassava Sciences (NASDAQ:SAVA) moves up 21 positions to top this week’s Fintel short squeeze candidates. Data shows 31.6% of the float is short and Cassava has a cost to borrow of 75.1%. Shares have traded between $15.72 and $146.16 over the last 52-weeks.
TherapeuticsMD: Drug development company TherapeuticsMD (NASDAQ:TXMD) ranks second on this week’s leaderboard. The company, which as a focus on developing products targeted for women, has 17.7% of the float short and a cost to borrow of 75.9%. The company moved up seven positions to enter the top five short squeeze candidates.
Related Link: 5 Short Squeeze Candidates To Watch This Week: Redbox Tops List With Huge Numbers, GameStop Rejoins The Leaderboard
Vertex Energy: Environmental services company Vertex Energy (NASDAQ:VTNR) ranks third on the Fintel short squeeze leaderboard, moving up nine positions for the week. Data shows 26.5% of the float short and a cost to borrow of 21.8%.
Eos Energy Enterprises: Battery storage solutions company Eos Energy Enterprises (NASDAQ:EOSE) announced a SPAC merger to go public back in September 2020. The company has seen shares trade between $1 and $21.80 over the last 52-weeks. Fintel data shows 29.7% of the float short and a cost to borrow of 20%.
GameStop Corp: Video game retailer GameStop Corp (NYSE:GME) is no stranger to being a short squeeze candidate. The stock remains in the fifth place position on the leaderboard for the week with data showing 24.1% of the float short and a cost to borrow of 98.3%. Short interest and the cost to borrow are both up from last week’s 23.8% and 50% respectively. A continued increase in the short interest and cost to borrow could move GameStop further up the leaderboard.