Who's Winning - The 'Shorters' Or The 'Squeezers'?

Two weeks ago I posted an article that explained all things short stock-related and identified 15  heavily shorted stocks that are currently following in the footsteps of GameStop which went parabolic a year ago in a classic short squeeze pushed up by individual investors connected through social media sites such as Reddit's WallStreetBets . Today's article is an update - a scorecard, if you will - of how well the 'squeezers' are doing relative to the 'shorters'.

In my previous article, entitled Short Squeeze Activity: New Players, Same Game, Different Results I provided answers to the following questions:

  1. Why Do Speculators 'Short' Stocks?
  2. How Do You Short A Stock?
  3. What Is Short Volume?
  4. What Is Short Interest?
  5. What Is A Short Squeeze?
  6. Which Stocks Have Outrageously High (i.e. +30%) Percentage of Short Sales to Total Shares?

A follow-up question answered in this article, is

  • "Who Is Currently Winning the 'Game' Between the 'Sellers' and the 'Squeezers'? 

I say "currently" because the 15 highly shorted stocks had declined 47%, on average, from the time their stocks began to be shorted in earnest in mid-November until the end of January 2022. Since then, however, the 15 stocks have advanced by 9%, on average, with 10 of the stocks going UP in price and the remaining 5 stocks going DOWN in price. The current score, as of last Friday, was: Squeezers 10; Shorters 5.

In the February article I identified the 15 stocks with +30% of short sales relative to their total shares and below I expand that list to include the ten (10) stocks with short sales relative to their total shares between 25% and 29%, as follows, in descending order:

  1. Shift Technologies (SFT): 29.4%
  2. Ocugen Inc. (OCGN): 27.9%
  3. Vinco Ventures (BBIG): 27.7%
  4. Workhouse Group (WKHS): 27.6%
  5. Nikola Corporation (NKLA): 27.3%
  6. Romeo Power (RMO): 26.9%
  7. Rite Aid (RAD): 26.7%
  8. Biofrontera Inc. (BFRI): 25.8%
  9. Vusix Corporation (VUZI): 25.7%
  10. Lordstown Motors (RIDE): 25.7%

Source: shortsqueeze.com

The above 10 stocks had declined (favoring the 'Sellers') from the time their stocks began to be shorted in earnest in mid-November until the end of January, 2022 by 62%, on average. Since then, however, the 10 stocks have advanced by 7%, on average, with 8 of the stocks going UP in price and the other 2 stocks going DOWN in price. The current score, as of last Friday, for this group of stocks was: Squeezers 8; Shorters 2. 

Conclusion

As of the end of last week, the short squeeze was beginning to take hold with 18 of the total of 25 stocks at play advancing so far in February for a combined total score of  Squeezers 18; Shorters 7.

Visit  munKNEE.com and register to receive our free Market Intelligence Report newsletter (sample  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.