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, which requires a subscription, provides a look at several of the top shorted stocks and how likely a short squeeze is to occur. Here’s a look at the top five short squeeze candidates for the week of July 11:
The Singing Machine Company: Karaoke audio equipment company The Singing Machine Company (NASDAQ: MICS ) tops the short squeeze leaderboard for the week. Shares of the company have risen from $5.50 to $8 in the last month. Fintel data shows 80.3% of the ...
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