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

22 thoughts on “The Short Squeeze Stocks”

  1. David L Tobin says:

    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. Rich says:

    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. David L Tobin says:

    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. David L Tobin says:

    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. admin says:

    SIGM broke out today

  6. David L Tobin says:

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

  7. admin says:

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

  8. David L Tobin says:

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

  9. AJ says:

    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. admin says:

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

  11. Clay R says:

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

  12. Clay R says:

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

  13. Andy says:

    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. admin says:

    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. Nidal says:

    “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. Jim says:

    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. Jim says:

    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. Nidal says:

    Thanks Jim,

    This site for shortsqueeze

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

  19. admin says:

    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. Goldfinger says:

    How do you calculate the BMB ratio?

  21. Bob says:

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

  22. David says:

    Very interesting list. Any updates for 2010?

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