5 Short Squeeze Candidates For The Week: AGC SPAC Rejoins, Digital Ally, Tattooed Chef Join Leaderboard

Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next GameStop Corp GME or AMC Entertainment Holdings Inc AMC.

A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back shares they initially borrowed at a higher price.

Fintel Data: Data from Fintel, which requires a subscription, provides a look at some of the top shorted stocks and data that shows how likely a short squeeze is to happen.

Here is a look at Fintel’s top five short squeeze candidates for the week of Nov. 22.

Huadi International Group Co: Small cap Huadi International Group HUDI tops the list for the second straight week. Fintel shows 21.8% of the float short, in line with last week’s total. The cost to borrow is 219%, which Fintel calls “colossal.”

This is the highest cost to borrow on record in the month of November and an increase from last week’s cost to borrow of 172%.

Related Link: 5 Short Squeeze Candidates To Watch: Huadi Tops List, Altimeter Group And Bit Digital Rejoin 

Progenity: Biotech company Progenity Inc PROG comes in second place for the second straight week. The second place finish comes after Progenity regularly topped the list. Fintel reports that 19.5% of the PROG float is short. The stock also has a cost to borrow of 68%. Last week the stock had 34% of the float short and an 85.7% cost to borrow.

Shares went from $3 to over $6 last week and closed the week around $5.

Altimeter Growth Corp: SPAC Altimeter Growth Corp AGC, which is merging with Grab, comes in third on Fintel’s short squeeze leaderboard for the week. Fintel reports 38.8% of the company’s float short. Raw short interest is up 10% higher than the previous month. The cost to borrow on AGC shares is 85%, compared to 24.8% in the previous week.

Digital Ally: Digital video imaging and storage company Digital Ally DGLY comes in fourth on the list. The company, which helps law enforcement, security and commercial companies, has 17.7% of its float short and a cost to borrow of 15.7%.

Shares jumped on Friday on the heels of the verdict in the Kyle Rittenhouse hearing. Fintel data shows institutional ownership in DGLY has increased 26% in the most recent quarter. Digital Ally is among the smallest stocks on the list with a market cap of $74 million.

Tattooed Chef: Plant-based food company Tattooed Chef Inc TTCF, which went public via SPAC merger, joins the Fintel leaderboard.

Fintel reports short interest of 35.7%, up 17% from the previous month. Fintel also reports shares have a cost to borrow of 92.8%, ranking as one of the highest of the week. Institutional ownership is up 3.6% in the most recent quarter.