(BBIG), (OPFI) – 5 short-term candidates to watch: SmileDirectClub, Kidpik join the ranking
Potential short-term play has picked up steam in 2021, with new retail traders looking for the next big move.
A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers may seek to close out their position and may face a loss if they have to repurchase the shares they originally borrowed at a higher price.
A squeeze can occur when short sellers are forced to buy to cover their position, which can cause the stock to rise much higher on many occasions.
Fintel data: Data from Fintelwhich requires a subscription, provides an overview of several of the top stocks sold short and data showing the likelihood of a short squeeze occurring.
Here is an overview Fintel’s top 5 short-term candidates for the week of January 31.
TSR inc: Computer programming services company TSR Inc. (NASDAQ: TSRI) leads the Fintel Short Squeeze chart for the week. Short interest stands at 54.9% of the company’s free float, according to the report. Short interest is 357,000 shares, which is considerably higher than last month. The cost of borrowing on the shares stands at 103%, which could make the company ripe for a squeeze.
Vinco Ventures: No stranger to short-term ranking, Vinco Ventures Inc. (NASDAQ: BBIG) joins the ranking. The consumer products and digital marketing company merged with ICT Tac rival Lomotif. Fintel shows 27% of BBIG’s float short. The cost of borrowing on the shares is 89%.
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SmileDirectClub: Orthodontic Society SmileDirectClub (NASDAQ: SDC) ranks third in the short-term ranking. Fintel has 30% of the company’s free float short and a cost of borrowing of 32%. Fintel is showing negative institutional fund flows into the stock with falling owners and falling allocations as well.
Kidpik Corp: E-commerce business Kidpik Corp. (NASDAQ:PIK) joins the short squeeze rankings for the week. Fintel shows 69% float short and a cost of borrowing of 199%, both among the highest of the week.
The stock would have ranked No. 1 in the rankings if it weren’t for the fact that the stock’s value has fallen over the past week. Fintel notes that a short squeeze and margin calls are less likely when the stock price drops. If stocks rise to start the week, PIK could be a solid target for a short squeeze and receive more social media mentions.
OpFi: fintech Opfi Inc. (NYSE: OPFI), which went public in an $800 million SPAC merger, uses artificial intelligence to target the everyday consumer overlooked by traditional financial services. The company ranks fifth in the week’s rankings with 36% short float and 18% borrowing fees. Short interest increased, with gross short interest standing at 1.75 million shares, up 36% from last month.
Photo courtesy of SmileDirectClub.
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