5 Short Squeeze Candidates To Watch: Kaival Tops The List Again, Oil And Agriculture Stocks Join With Rising Prices

Potential short squeeze plays gained steam in 2021, with new retail traders looking for the next huge move.

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 the shares they initially borrowed at a higher price.

A squeeze can occur when short sellers are forced into buying to cover their position, which can cause shares to move up much higher on many occasions.

Fintel Data: Data from Fintel, which requires a subscription, provides a look at several of the top shorted stocks and data on how likely a short squeeze is to occur.

Here’s a look at Fintel’s top five short squeeze candidates for the week of Mar. 7.

Kaival Brands: For the second straight week, vaping device distributor Kaival Brands Innovation Group KAVL tops the list. Fintel shows that 30% of the float is short, with short interest up 681% in the latest report. The cost to borrow on Kaival Brands shares is 228%. Last week, Kaival Brands had a cost to borrow of 409%, one of the highest on record. Despite the drop in cost to borrow, 228% still marks one of the highest figures of all time.

MDJM: Real estate service company MDJM MDJH ranks second on the short squeeze leaderboard for a second straight week. Fintel shows 28.9% of the float short and a cost to borrow of 155%. The cost to borrow on shares last week was 145%, marking a slight rise in this key figure for determining the likelihood for a short squeeze to occur.

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AppHarvest: Indoor farming company AppHarvest APPH ranks third on the short squeeze leaderboard for the week. Fintel shows 23% of the float short and a cost to borrow shares of 60%. The high short interest and high cost to borrow come on the heels of shares trading higher last week, with agriculture stocks moving up on the geopolitical climate.

Arcimoto: Three-wheeled electric vehicle company Arcimoto Inc FUV ranks fourth on the leaderboard for the week. Fintel shows 37.3% of the float short, with raw short interest rising. The cost to borrow at 16.2% is among the lowest, but could be worth watching if it elevates higher.

Ion Geophysical Corp: Technology and services company Ion Geophysical Corp IO ranks fifth for the week with 14.1% of the float short and a cost to borrow of 46.2%. The company provides services and solutions for the oil and gas industry, which has seen renewed interest from investors with the rising cost of oil worldwide due to the Russia-Ukraine conflict.