How likely is it that a beaten-down, heavily shorted stock can become a near certain candidate for a short squeeze? In some cases, rising stock prices like we have seen since mid-June make some stocks more squeezable and telegraph a short squeeze likelihood of 100%.
Ihor Dusaniwsky of S3 Partners calculates a Squeeze Score based on short dollars at risk, short interest including synthetic long bets created by short sales, stock loan liquidity and trading liquidity. In the current case, recent stock price gains have generated mark-to-market losses on several crowded (i.e., popular) trades and made them highly susceptible to a short squeeze.
In a tweet posted Wednesday, Dusaniwsky identified 10 stocks with Squeeze Scores of 100:
- AMC Entertainment Holdings Inc. (NYSE: AMC)
- Affirm Holdings Inc. (NASDAQ: AFRM)
- Bed Bath & Beyond Inc. (NASDAQ: BBBY)
- Beyond Meat Inc. (NASDAQ: BYND)
- Carvana Co. (NYSE: CVNA)
- Coinbase Global Inc. (NASDAQ: COIN)
- GameStop Corp. (NYSE: GME)
- MicroStrategy Inc. (NASDAQ: MSTR)
- Sirius XM Holdings Inc. (NASDAQ: SIRI)
- Upstart Holdings Inc. (NASDAQ: UPST)
The following table shows the number of shares shorted in millions, the percentage of shares shorted (not including synthetic longs), the percentage of shorted shares including dark pool volume, and the borrow fee, the annualized interest rate on the borrowed shares. All these stocks have a Squeeze Score of 100. The data comes from Fintel.
| Name | Ticker | Shares Shorted | % of Total Float | Borrow Fee % |
|---|---|---|---|---|
| AMC | AMC | 95.10 | 18.45 | 6.45 |
| Affirm | AFRM | 39.70 | 19.13 | 0.51 |
| Bed Bath & Beyond | BBBY | 29.10 | 41.86 | 8.96 |
| Beyond Meat | BYND | 19.90 | 35.77 | 64.73 |
| Carvana | CVNA | 27.50 | 30.34 | 1.29 |
| Coinbase | COIN | 30.34 | 21.04 | 3.18 |
| GameStop | GME | 59.90 | 23.63 | 27.44 |
| MicroStrategy | MSTR | 3.40 | 36.48 | 8.63 |
| Sirius XM | SIRI | 206.50 | 30.49 | 15.26 |
| Upstart | UPST | 25.80 | 36.93 | 24.84 |
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