Potential short squeeze plays gained steam in 2021 and continued through 2022 with new 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 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 Aug. 29.
FaZe Holdings: eSports and digital content company FaZe Holdings Inc (NASDAQ:FAZE) tops the week’s short squeeze leaderboard. The company went public via SPAC merger and saw high redemptions at the merger deadline. As a result, the company saw its float size reduced by 92%. The stock is now a low float, high short interest stock, which has led to several increases for the share price. The company is now listed as the best short squeeze candidate by Fintel with 99.4% of the float short and a cost to borrow of 678.1%
TDH Holdings: Pet food company TDH Holdings (NASDAQ:PETZ) re-enters the top five short squeeze candidates list where it started the month, moving up 20 positions in the last week. Fintel data shows 27.2% of the float short and a cost to borrow of 61.7%.
Singing Machine Company: Karaoke audio equipment company The Singing Machine Company (NASDAQ:MICS) is the lone carryover from last week’s top five that also appeared in the top five short squeeze candidates for the week of Aug. 29. Fintel data shows 24.0% of the float short and a cost to borrow of 105.7%. The stock had 26.7% of its float short and a cost to borrow of 100.9% in the previous report. Singing Machine Company topped the list last week and has in periods of July as well.
Related Link: 5 Short Squeeze Stocks That May Soar Plus 5 To Watch: Revlon Climbs, Singing Machine Moves Up And Weber Makes Big Move
Blue Apron Holdings: Meal kit company Blue Apron Holdings (NYSE:APRN) moves up two positions to rank fourth for the week. Data shows 35.9% of the float short and a cost to borrow of 25.8%. The stock was mentioned by Benzinga as a short squeeze stock to watch recently.
Weber Inc: Outdoor cooking company Weber Inc (NYSE:WEBR) ranks fifth for the week, moving up two positions from the previous week. Fintel data shows 52.1% of the float short and a cost to borrow of 38.5%. The stock was flagged by Benzinga as a short squeeze stock to watch recently in the weekly short squeeze report and an article about a former hedge fund calling the company the next Bed Bath & Beyond (NASDAQ:BBBY).
Stocks to Watch: One of last week’s big gainers falls out of the top five and ranks tenth for the week. Cosmetics company Revlon Inc (NYSE:REV) has 20.5% of the float short and a cost to borrow of 91.3%, both figures down from last week’s report.
CompoSecure (NASDAQ:CMPO) moves up 24 spots to rank 24th on the short squeeze leaderboard. The stock has been inching close to the top five on several occasions.
SilverSun Technologies Inc (NASDAQ:SSNT) moves up 4,375 positions in one of the biggest moves of the week. The stock ranks 13th on the leaderboard with 9% of the float short and a cost to borrow of 229.5%, one of the highest for the week.
Applied DNA Sciences (NASDAQ:APDN) moves up 186 places to 14th on the leaderboard. Data shows 13.8% of the float short and a cost to borrow of 124%.
Big 5 Sporting Goods (NASDAQ:BGFV) moves up 26 positions to 36th place and could be a stock to watch. Data shows 32.3% of the float short and a cost to borrow of 14.5%.
