Short Squeeze Idea: 15 Oversold Stocks Being Exited By Short Sellers

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The following is a list of stocks that are oversold by the Relative Strength Indicator, RSI(14) < 40. Additionally, all of these names are highly shorted with short float of over 10%. What’s interesting is that short sellers seem to be reducing their short positions in these companies.

To compile this list we found 125 companies that fulfilled the following characteristics:

-Market cap above 300M

-RSI(14) below 40

-Short Float above 10%

We then looked at the change in short interest since the end of January up to February 28.

These are the top 15 companies that have seen the greatest drop in short interest.

Which one of these stocks do you think is more likely to be short squeezed?

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1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by percentage change in short interest.

1. Fuel Systems Solutions, Inc. (FSYS): Auto Parts Industry. Market cap of $482.86M. RSI(14) at 29.58. Short float at 18.79%. Shares shorted decreased to 2.80M, from 3.20M the previous month (-12.5% drop). Might be undervalued at current levels, with a PEG ratio at 0.72, and P/FCF ratio at 12.49. The stock is a short squeeze candidate, with a short float at 18.79% (equivalent to 9.22 days of average volume). The stock is currently stuck in a downtrend, trading -9.13% below its SMA20, -13.52% below its SMA50, and -24.55% below its SMA200. The stock has performed poorly over the last month, losing 15.51%.

2. Radian Group Inc. (RDN): Surety & Title Insurance Industry. Market cap of $902.49M. RSI(14) at 32.05. Short float at 14.36%. Shares shorted decreased to 18.46M, from 20.79M the previous month (-11.21% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 2.93). The stock is currently stuck in a downtrend, trading -10.43% below its SMA20, -16.7% below its SMA50, and -18.82% below its SMA200. It's been a rough couple of days for the stock, losing 7.88% over the last week.

3. Boston Beer Co. Inc. (SAM): Beverages - Brewers Industry. Market cap of $1.14B. RSI(14) at 35.04. Short float at 10.78%. Shares shorted decreased to 512.18K, from 572.52K the previous month (-10.54% drop). The stock is a short squeeze candidate, with a short float at 10.78% (equivalent to 6.63 days of average volume). After a solid performance over the last year, SAM has pulled back during recent sessions. The stock is -6.4% below its SMA20 and -6.68% below its SMA50, but remains 10.14% above its SMA200. The stock has gained 74.32% over the last year.

4. Athenahealth, Inc. (ATHN): Business Services Industry. Market cap of $1.48B. RSI(14) at 36.51. Short float at 17.76%. Shares shorted decreased to 5.97M, from 6.66M the previous month (-10.36% drop). The stock is a short squeeze candidate, with a short float at 17.76% (equivalent to 13.58 days of average volume). After a solid performance over the last year, ATHN has pulled back during recent sessions. The stock is -5.98% below its SMA20 and -4.43% below its SMA50, but remains 21.63% above its SMA200. The stock has gained 7.55% over the last year.

5. Fushi Copperweld, Inc. (FSIN): Industrial Electrical Equipment Industry. Market cap of $320.17M. RSI(14) at 19.56. Short float at 12.97%. Shares shorted decreased to 890.90K, from 991.12K the previous month (-10.11% drop). The stock is a short squeeze candidate, with a short float at 12.97% (equivalent to 13.5 days of average volume). The stock is currently stuck in a downtrend, trading -15.88% below its SMA20, -15.26% below its SMA50, and -11.35% below its SMA200. It's been a rough couple of days for the stock, losing 11.86% over the last week.

6. Sequenom Inc. (SQNM): Biotechnology Industry. Market cap of $444.24M. RSI(14) at 33.43. Short float at 16.17%. Shares shorted decreased to 15.91M, from 17.66M the previous month (-9.91% drop). Relatively low correlation to the market (beta = 0.3), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 16.17% (equivalent to 5.94 days of average volume). The stock is currently stuck in a downtrend, trading -6.72% below its SMA20, -16.22% below its SMA50, and -14.18% below its SMA200. The stock has performed poorly over the last month, losing 16.86%.

7. MGIC Investment Corp. (MTG): Surety & Title Insurance Industry. Market cap of $1.67B. RSI(14) at 34.71. Short float at 14.96%. Shares shorted decreased to 29.27M, from 32.11M the previous month (-8.84% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 3.02). The stock is a short squeeze candidate, with a short float at 14.96% (equivalent to 5.34 days of average volume). The stock is currently stuck in a downtrend, trading -8.21% below its SMA20, -14.6% below its SMA50, and -9.56% below its SMA200. The stock has performed poorly over the last month, losing 17.61%.

8. Pennsylvania Real Estate Investment Trust (PEI): REIT - Retail Industry. Market cap of $741.23M. RSI(14) at 37.23. Short float at 11.24%. Shares shorted decreased to 5.85M, from 6.39M the previous month (-8.45% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 2.7). The stock is a short squeeze candidate, with a short float at 11.24% (equivalent to 10.86 days of average volume). The stock has performed poorly over the last month, losing 10.75%.

9. GSI Commerce Inc. (GSIC): Business Services Industry. Market cap of $1.25B. RSI(14) at 29.87. Short float at 16.82%. Shares shorted decreased to 10.88M, from 11.83M the previous month (-8.03% drop). The stock is a short squeeze candidate, with a short float at 16.82% (equivalent to 8.24 days of average volume). The stock is currently stuck in a downtrend, trading -7.36% below its SMA20, -14.68% below its SMA50, and -23.43% below its SMA200. The stock has performed poorly over the last month, losing 12.27%.

10. Boyd Gaming Corp. (BYD): Resorts & Casinos Industry. Market cap of $807.11M. RSI(14) at 32.32. Short float at 31.24%. Shares shorted decreased to 17.20M, from 18.67M the previous month (-7.87% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 2.49). The stock is a short squeeze candidate, with a short float at 31.24% (equivalent to 6.18 days of average volume). The stock has performed poorly over the last month, losing 23.22%.

11. Gannett Co., Inc. (GCI): Publishing - Newspapers Industry. Market cap of $3.62B. RSI(14) at 35.17. Short float at 12.41%. Shares shorted decreased to 29.70M, from 32.01M the previous month (-7.22% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 2.46). The stock is a short squeeze candidate, with a short float at 12.41% (equivalent to 7.82 days of average volume). It's been a rough couple of days for the stock, losing 7.8% over the last week.

12. ArvinMeritor Inc. (ARM): Auto Parts Industry. Market cap of $1.65B. RSI(14) at 37.07. Short float at 10.91%. Shares shorted decreased to 10.15M, from 10.91M the previous month (-6.97% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 3.43). The stock has performed poorly over the last month, losing 11.89%.

13. rue21, Inc. (RUE): Apparel Stores Industry. Market cap of $772.16M. RSI(14) at 36.11. Short float at 10.23%. Shares shorted decreased to 2.28M, from 2.44M the previous month (-6.56% drop). The stock is a short squeeze candidate, with a short float at 10.23% (equivalent to 17.95 days of average volume). The stock has lost 6.89% over the last year.

14. Central Pacific Financial Corp. (CPF): Regional - Pacific Banks Industry. Market cap of $586.56M. RSI(14) at 34.17. Short float at 15.22%. Shares shorted decreased to 228.36K, from 242.62K the previous month (-5.88% drop). Relatively low correlation to the market (beta = 0.79), which may be appealing to risk averse investors. The stock is currently stuck in a downtrend, trading -20.81% below its SMA20, -35.71% below its SMA50, and -37.79% below its SMA200. It's been a rough couple of days for the stock, losing 6.67% over the last week.

15. Janus Capital Group Inc. (JNS): Asset Management Industry. Market cap of $2.23B. RSI(14) at 33.26. Short float at 13.31%. Shares shorted decreased to 23.44M, from 24.90M the previous month (-5.86% drop). This is a risky stock that is significantly more volatile than the overall market (beta = 2.66). Might be undervalued at current levels, with a PEG ratio at 0.84, and P/FCF ratio at 9.42. The stock is a short squeeze candidate, with a short float at 13.31% (equivalent to 7.33 days of average volume). It's been a rough couple of days for the stock, losing 6.7% over the last week.

Short interest data sourced from Yahoo! Finance, all other data sourced from Finviz. Data sourced on March 15th.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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