One of the hot penny stocks under $1 to watch this week is Farmmi Inc. Farmmi specializes in things like fungus and Shiitake mushrooms and sells to a global consumer base. It has also begun expanding its offerings through a series of new acquisitions and establishing additional cm trading broker review subsidiaries. “BLIN has a borrow fee rate of 135%, which is extraordinary,”Risenhoover said. “Its Short Interest % of float is just 7%, which is not. Should the short interest increase or the price and volume continue to climb, we could see margin calls and a short squeeze.”

Dollar-based net expansion rates for the third and fourth quarters were 147% and 143%, respectively, which denotes that existing clients spent 47% and 43% more than they did in the year-ago quarters. For much of the past three months, retail investors have been the talk of the town on Wall Street. As this stake is worth more than GRPN’s market cap, the stock could be poised to surge as more investors are familiar with this stake.

Namely, the analyst community is calling for a sales contraction of 3% driving per-share earnings back down to $3.11 for 2022. The stock’s continued to rally from its March-2020 low, however, in a way that suggests lessons in corporate finance such a slowdown isn’t in the cards. The higher the short ratio, the higher the potential profits when the shorts get squeezed. Another one of the penny stocks we’ve discussed is Alset EHome International.

Look out for second-quarter earnings at the end of July as a potential upside catalyst. In an update this week, CEO Yefang Zhang explained Farmmi’s recent acquisitions and expansionary plans. These include its newly acquired Jiangxi Xiangbo Agriculture and Forestry Development company. New products like bamboo, Chinese fir trees, and Camellia oil came with this purchase. Farmmi also established several subsidiaries focused on health and wellness.

The Shorts Get Cautious And Investors Reap The Rewards

If you are interested in similarly small, high-growth potential stocks you could join us at our marketplace service SHU Growth Portfolio, where we maintain a portfolio and a watchlist of similar stocks. The security earlier surged to its highest level since February, building off of yesterday’s nearly 20% gain. The 20-day moving average has been guiding the shares higher since early August, containing a handful of pullbacks along the way. And with 8.5 million of Big 5’s 20.3 million outstanding shares needing to be bought back sooner or later, this stock represents one of the market’s most explosive short squeeze candidates.

5 stocks ripe for short squeeze

But the dynamics of short squeezes are always changing, and what worked for GameStop, AMC, and Sundial two months ago is highly unlikely to work now. Stock climbed again in 2021 after the company reported exceptional financial results throughout the year which saw the stock reach a high of $64 in March 2021. In addition, any of the above-mentioned violations may result in suspension of your account. I have no business relationship with any company whose stock is mentioned in this article. Apart from lowering cost this should also help allay concerns about fraud and they could even turn it into a profit center by selling the CRM services to competitors . Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting.

GETY, PEGY: The Top 5 Short Squeeze Stocks to Watch This Week

Cutting off people at the lower end, especially in rural America where broadband service competition is sparse and expensive, isn’t a vote winner. However, the company’s fate has changed dramatically with the arrival of the ACP , which was part of the bipartisan infrastructure and aimed at solving the digital divide. Doubters continue to bet this ticker is due for a pullback, ignoring how undervalued shares are even with the brewing headwind. The cellular business is hugely competitive, and Sprint’s significantly smaller size has made it challenging to compete with the huge infrastructure investments that its larger peers are able to make.

We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints vantage broker about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.

  • Look for volume on that move that hits near or above its three-month average action of 299,797 shares.
  • We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view.
  • A recent study demonstrated that Preecludia could “significantly distinguish” between the presence and absence of preeclampsia.
  • This stock has been trending sideways for the last month and change, with shares moving between $53.67 a share on the downside and $60 a share on the upside.
  • Due to the exceptionally high daily trading volumes for GameStop, AMC, and Sundial, short-sellers could easily exit their position in a matter of hours, should they choose to do so.

Company offers a host of services for the underbanked, mostly from third parties to local shops. While this is an interesting corner of the market that is difficult to reach, these generally generate low gross margins. View our full suite of financial calendars and market data tables, all for free.

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That move has now pushed PIR within range of triggering a near-term breakout trade post-earnings. This positive price action has likely caught short sellers off guard, though short interest declined only slightly in the most recent reporting period. In other words, there’s still ample room buying power on the sidelines to help buoy WTW, considering 65.7% of Weight Watchers International, Inc.’s float is sold short.

5 stocks ripe for short squeeze

CarMax is one of the largest publicly-traded car dealers, with a network of 158 superstore locations that sold more than 619,000 vehicles last year. Unlike most of its peers in the auto dealer space, CarMax is unique in that most of its volume actually comes from used cars, with only about 1% of revenue generated through new car sales. That’s a very good thing for the firm’s bottom line, with used car margins typically twice as large per unit as the profits made on new cars. Today, we’ll replicate the most lucrative side of this strategy with a look at five big-name stocks that short sellers are piled into right now.

WINDERMERE, Fla. — Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it’s never a great idea to stay short once a bullish earnings report sparks a big short-covering rally. “VRPX has a borrow fee rate of 28.8%, which, although less than our top two picks this week, is still significantly elevated,” Risenhoover said. “Like the other candidates, VRPX has had a significant increase in trading volume and price action, which could precipitate a short squeeze.” Luckily for them, Fintel has investors covered with its Short Squeeze Leaderboard.

A potential short squeeze isn’t the only reason to own a stock, but if you like Big 5 Sporting Goods, it’s certainly another reason to own this one. Realty Income is one of the biggest real estate investment trusts on the market. The firm owns approximately 4,500 commercial properties, mainly freestanding retail locations, and it leases those properties to tenants on a triple-net basis. That means tenants, not the firm itself, are responsible for the property taxes, insurance, and maintenance costs at Realty Income’s properties. (Cars that don’t fit its sales criteria are sold at auction.) Used cars sold at retail make up 80% of revenue. By acting as a known intermediary in the used car buying process, CarMax is able to charge a premium over competing dealerships that have less invested in their reputations.

Is Big 5 Sporting Goods A Short Squeeze Stock?

If we get that move, then PIR will set up to re-test or possibly take out its next major support level at its 200-day moving average of $17.78 a share. That said, let’s not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It’s important that you don’t go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you’re letting the trend emerge after the market has digested all of the news. Though short sellers have already started to hit the exits, with short interest down 9.6% in the most recent reporting period, there’s plenty of pessimism left to be unwound.

These stocks could be prime candidates for a short squeeze in the months ahead. If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility.

In the two most recent reporting periods, short interest on JPM rose 3.7% to 35.2 million shares, or 2.5 times the stock’s average pace of trading. What’s more, analysts have plenty of room to upwardly revise their ratings on the outperforming stock. Currently, 12 of 21 brokerages still maintain a “hold” or “strong sell” rating toward JPMorgan Chase & Co. The shares could find a fresh burst of buying power, should short sellers and/or analysts capitulate to their upward trajectory. Based on the surge in streaming use across all brands it is likely that Discovery will see continued momentum in that channel. With that in mind, the 10% YOY increase expected for 2021 is likely to be too low and the first evidence is already in.

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