5 Short-Squeeze Stocks to Buy Like GameStop or AMC - Fintel - Business Insider

siantarkalo.blogspot.com

WallStreetBets users have often bought short-squeeze stocks like GameStop or AMC.

REUTERS/Dado Ruvic/Illustration/File Photo

This story is available exclusively to Insider subscribers. Become an Insider and start reading now.

Short squeezes lead to sudden stock-price surges but are notoriously hard to predict.
The data provider Fintel said these five stocks looked most primed for a squeeze this week - 3 are brand-new.
Pharmaceuticals firm Biomerica topped this week's leaderboard.
See more stories on Insider's business page.

The data provider Fintel has released the latest list of stocks that it says are most likely to experience a short squeeze during the week of October 4, based on a number of metrics it monitors.

Social-media day traders have banded together multiple times this year to buy "meme stocks," putting pressure on short sellers to close their positions by buying back shares. The two highest-profile examples are GameStop and AMC Entertainment. Both skyrocketed as retail investors led a buying frenzy and made millions at the expense of hedge funds, which are often responsible for much of the shorting activity.

Biomerica (BMRA) topped this week's short-squeeze list. The pharmaceutical firm's share price has been volatile this year, dropping from a February high of over $8 to under $3.50. At the start of October, shares surged from $4.50 to over $6.50 in a single day after the firm announced an exclusive merchandise supplier deal with Walmart.

Stocks generally achieve "meme status" once they become popular on forums such as Reddit's WallStreetBets or StockTwits, or on other social-media platforms such as TikTok.

Insider lists Fintel's top five picks for short-squeeze candidates for the week of October 4 below, ranked by the firm's short squeeze score calculation. A score of 100 reflects maximum potential for a squeeze, and the calculation is based on metrics such as borrowing fees and the percentage of short interest in a stock, as well as inputs such as trading volume.

Biomerica

Ticker: BMRA

Short-squeeze score: 97.16

Fintel analysis: "Biomerica tops this week's list with a score of 97.16. The company's cost to borrow is 46.07% and 9.36% of the free float is shorted. The company has enjoyed a steady increase in share price over the last few months, climbing from a low of $3.50 / share in July to a high of 5.38 last week, before gapping up to 6.60 on Friday and then closing at 6.20. Last week the company announced a new supplier agreement with Walmart, which is the most likely reason for this gap. Based on this, it is likely that longs will continue to accumulate, putting intense pressure on shorts that fail to cover in time. At the current costs to borrow and with the price action continuing, the likelihood of margin calls will increase as will the probability of a squeeze."

Progenity

Ticker: PROG

Short-squeeze score: 97.16

Fintel analysis: "Progenity is second on this week's list, with a borrow fee rate of 39.17% and with 37.89% of float shorted. The company's share price has been in steady decline for the last six months, up until last week, when the price shot up from a low of 0.86 / share to $2.20 / share, before closing at 1.78 on Friday. Recent news is that the USPTO granted a patent for a preeclampsia test."

Cellect Biotechnology

Ticker: APOP

Short-squeeze score: 96.07

Fintel analysis: "Third on this week's list is Cellect Biotechnology, with a score of 96.07. The company's borrow fee rate is 102.92% - the highest of this week's list, and the total float shorted is 30.56, which is extremely elevated. Like the other candidates, the company had good news this week, when shareholder approval for a merger with Quoin Pharmaceuticals was approved."

Aterian

Ticker: ATER

Short-squeeze score: 95.80

Fintel analysis: "Aterian is fourth on this week's list, with a borrow fee rate of 80.71% and 31.8% of free float shorted. Aterian has been on the top five list for several weeks now and is a favorite of meme-stockers and short sellers. Raw short interest has climbed from 4.38M shares in mid-July to 7.5M shares at the last reporting period, an increase of 71% in just a few weeks - indicating significant and increased interest in the company by short sellers."

Marin Software

Ticker: MRIN

Short-squeeze score: 94.69

Fintel analysis: "Marin Software is back on this week's list - this time at number five. The company's borrow rate is elevated at 42.73% and the total free float shorted is just 9.16%, the lowest of this week's candidates. The company announced a new revenue-sharing agreement with Google LLC that supersedes their existing agreement, which expired on September 30, which caused the share price to pop last week."

For you

Adblock test (Why?)

"Short" - Google News
October 04, 2021 at 05:43PM
https://ift.tt/3l7dDOI

5 Short-Squeeze Stocks to Buy Like GameStop or AMC - Fintel - Business Insider
"Short" - Google News
https://ift.tt/2QJPxcA

Bagikan Berita Ini

Search