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The Short Squeeze Stocks

Recently as I am trading undervalue stocks, I notice that significant gain can be triggered by positive news on these stocks. Fundamentally strong stocks with beaten down prices and high levels of short interests can easily fall into a phenomenon called “Short Squeeze”. Short Squeezes happen when a bearish stock turns around, creating elevated prices that forces the shorts to buy to cover, which in turn takes the price even higher. In a way, it is basically a bearish “bubble”.

Since short squeeze often creates opportunities for huge gains. I decided to create a list of fundamentally strong and undervalued stocks and observe their short interest. This list would be automatically updated on a regular basis.

The Short Squeeze List

:: Apr.15.2008 :: Finance/Investment, Investment Tools :: 22 Comments »

22 Responses to “The Short Squeeze Stocks”

  1. on 15 Apr 2008 at 12:16 pm1David L Tobin

    Love the strategy and have been moving in this direction for years. I also add some technical indicators, ADX above 40, slow stochastics below 20 and some momentum in the right direction. If I can get a chart pattern I like, so much the better. Currently making money on NTRI and watching JOSB, CROX, and CALM.

  2. on 20 Apr 2008 at 2:39 am2Rich

    I believe the CALM sort position is now approx 108% of the float. Some sources mistakenly include 2.4 million Class A shares in the float.

  3. on 05 May 2008 at 11:23 am3David L Tobin

    I took a position in CROX which the price has falen below until 5/3/08. I am hoping this week (5/5) we will see some positive movement. Still watching JOSB but may be getting ready to buy.

  4. on 05 May 2008 at 1:46 pm4David L Tobin

    Possibly looking for a pull back to 22 on JOSB to form the bottom of the second right hand should on a complex reverse head and shoulders.

  5. on 06 May 2008 at 2:31 am5admin

    SIGM broke out today

  6. on 06 May 2008 at 2:32 pm6David L Tobin

    If SIGM forms a flag (a few days of slightly lower closes, I’ll probably jump in.

  7. on 06 May 2008 at 11:47 pm7admin

    SIGM up another 10% today. CALM up 6%. shorts are feeling the pressure.

  8. on 08 May 2008 at 3:14 am8David L Tobin

    CROX up 15% after hours after company reports a loss due to nonrecurring charges. Year guidance is in the $1.50 range.

  9. on 23 May 2008 at 8:22 pm9AJ

    If I may ask, where do you get information about the short positions? Based on this blog I plan to check on the short ratio of a stock before I make any future purchases and the stock may not necessarily be listed here. Thanks in advance and also thanks for this post. I have it bookmarked :) .

  10. on 30 May 2008 at 3:41 pm10admin

    in Yahoo Finance, Key statistics section you can find the short positions.

  11. on 08 Jul 2008 at 1:47 am11Clay R

    Why isn’t F on your list? Is it b/c it has outstanding convertible stock?

  12. on 08 Jul 2008 at 1:49 am12Clay R

    re-read your strategy. F’s not in your list as it has a negative IRR

  13. on 28 Jul 2008 at 12:22 am13Andy

    Love your list of shorts. Do you know of a place where I can find a more up to date information on shorts. Yahoo is atleast 3 week behind normally. But if we can get information atleast a week or so old that could be very useful for a quick purchase in and out.

    Also, What does IRR stand for. You have 3 IRRs listed for every stock. Which is the actual IRR of the stock?

    Thanks
    Andy

  14. on 04 Aug 2008 at 3:55 am14admin

    I do not know of any source that’s more recent.

    IRR stands for Internal Rate of Return. It is my estimation of the expected annual return base on my own valuation models. The three IRR’s represent different levels of aggressiveness on the growth outlook. The lower IRR assumes very conservative growth in the future and the higher number assumes the stock’s EPS will grow rapidly as it did in the past.

  15. on 03 Nov 2008 at 12:18 pm15Nidal

    “The Short Squeeze Stocks”

    Thanks for the great work you doing!

    Is it possible to add a field called ” Date Added to List” to track the date for each stock

  16. on 13 Nov 2008 at 6:42 pm16Jim

    You said: A high IRR with a high Short % of Float is a recipe for short squeeze. What is the ideal number of these two number? Thanks!

  17. on 13 Nov 2008 at 7:11 pm17Jim

    Hi,
    You should try to the short interest data from Nasdaq website which have more up to date information. For example, info for JOSB in Yahoo is as 10/10/08 but in Nasdaq is 10/31/08 now

    http://quotes.nasdaq.com/asp/MasterDataEntry.asp?page=ShortInterest

  18. on 01 Dec 2008 at 8:35 am18Nidal

    Thanks Jim,

    This site for shortsqueeze

    http://www.shortsqueeze.com/index.php?symbol=IIG

  19. on 17 Dec 2008 at 4:09 am19admin

    For me I like stocks with high IRR ( > 15%), little or no debt (debt to equity < 0.8), a sizable cash / share.

    Then you look at the company and assess its business model and growth potential. Short squeeze ratio is more of a reference on potential short term gains.

  20. on 15 Feb 2009 at 3:34 pm20Goldfinger

    How do you calculate the BMB ratio?

  21. on 24 Mar 2009 at 12:38 pm21Bob

    Hi,
    Just curious, but I don’t see NETFLIX, probably one of the best short squeezes right now.

  22. on 01 Feb 2010 at 1:21 pm22David

    Very interesting list. Any updates for 2010?

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