A potential short squeeze play will gain momentum in 2021 and continue into 2022, with new traders looking for the next big move.
Common characteristics that can lead to short squeeze include high short-term interest rates and high borrowing costs.
Here’s a look at this week’s top five short squeeze candidates, based on Fintel’s Short Squeeze Leaderboard, as well as other stocks watching the list move up.
- Edible garden EDBLs: Topping this week’s Short Squeeze Leaderboard is Edible Garden, a leader in greenhouse-grown sustainable produce. The data shows a float short of 151.3% and a borrowing cost of 105.1%. Last week, there was a reverse stock split in the shares of Edible Garden.
- Getty Images tide: Getty Images, savvy in short squeeze leaderboards since going public with a SPAC merger, ranks #2 on the leaderboards. Getty Images moved up one spot from last week’s leaderboard. The data show his 99.1% of float short and borrowing costs 154.0%.
- Kara Pharmaceutical Wrong: The clinical-stage biopharmaceutical company falls two places to third after topping the leaderboard for the second consecutive week. The data shows 17.6% of float shorts are down from 36.9% last week. Equity borrowing costs were 277.5%, down from 288% last week. Kala’s stock price has previously surged after the FDA approved an investigational application for a new drug.
- Swvl Holdings Co., Ltd. SWVL: Mobility company Swvl Holdings saw its shares fall after recently announcing a reverse stock split. The stock price climbed him 1,785 positions and he ranked 4th on the Short Squeeze Leaderboard. This is the biggest jump among the top 10 contenders. The data shows a float short of 111.8% and a borrowing cost of 82.0%. The company recently saw its share price fall after announcing a 25-to-1 reverse stock split.
- Sientra Co., Ltd. look: Orthopedic Sientra moves up 1,030 spots to #5 for the week. The data shows a float short of 122.4% and a borrowing cost of 7.0%. The company recently announced a reverse split.
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Stocks to watch: Aside from the top five short squeeze candidates, a few stocks have made big moves and could be of interest to investors.
- MicroStrategy MSTR: with software companies Bitcoin Bitcoin/USD Holder MicroStrategy fell two spots to fourth place. The data show 37.3% of the float short and 36.1% of the borrowing cost. The company reported quarterly earnings this week and has been a frequent short-selling target.
- Pax Medica Co., Ltd. PXMD: PaxMedica dropped from 6th to 8th place after being in the top 5 for several weeks. The data shows 17.5% of float shorts are down from 30.5% last week. Equity borrowing costs stood at 685.1%, down from 810.9% last week, but remain one of the highest in recent weeks.
- school group APMs: One of the biggest jumps of the week is biopharmaceutical company Aptorum. The stock price has moved him up 1,293 spots to 11th place. The data show his borrowing costs of 9.4% and 28.6% of the float short.
- golden sun education GSUN: Chinese tutoring company Golden Sun climbed 592 places to rank 14th for the week. The data shows 11.7% for float shorts and 226.6% for borrowing costs.
- Tailwind Acquisition TWND: SPAC Tailwind ranked 15th on the leaderboard, moving up 73 places. The company will merge with industrial company NUBURU in a transaction approved in December. The data show a float short of 8.5% and a borrowing cost of 26.5%.
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