3 Short Squeeze Candidates In The Technology Sector

Low float stocks can be some of the most volatile stocks in the market. If you mix in a short squeeze, the potential short-term gains in a low float stock can be extreme.

A stock’s float is the number of shares that trade freely on the public market. Because insiders and institutional investors don’t typically trade their shares on a daily basis, those shares don’t typically contribute to a stock’s near-term liquidity. Float is the number of shares that remain after accounting for insider and institutional ownership.

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Why Is It Important? When a stock gains positive momentum in the market, momentum buyers can rush in all at once. If a stock has high short interest, short covering can quickly ramp up demand for shares, triggering a short squeeze. Since low float stocks have relatively few shares trading freely, a major imbalance in supply and demand can serve as rocket fuel for share price.

Buying a low float stock with high short interest isn’t a guarantee of a short squeeze. There still typically needs to be some form of catalyst to get the stock moving in the first place. However, traders can keep an eye on these stocks for any signs of life to try to catch most of a potential big move.

Short Squeeze Candidates: Here are three tech sector stocks that have all the ingredients for a major short squeeze.

Koss Corporation KOSS
Koss produces stereo headphones and accessories, and the stock has already demonstrated just how much of a short squeeze it is capable of. In January, WallStreetBets traders drove Koss shares from under $4 to as high as $127.45 in a matter of days. Since then, the stock has come back down to around $25, but it still has explosive potential.

Koss has a float of just 1.56 million shares and a short percent of float of 38.4%, according to Finviz.

Kubient Inc KBNT
Kubient is another under-the-radar tech-sector stock that already experienced a significant short squeeze last month. The video advertising tech stock skyrocketed from under $6 to as high as $16.26 in mid-February before settling back down to under $7.

With a float of just 4.97 million shares and a short percent of float of 24.3%, Kubient still has plenty of short squeeze rocket fuel left in the tank.

iSun Inc ISUN
iSun, formerly The Peck Company Holdings, Inc., completed a merger with iSun Energy LLC in January. The news of the merger sent Peck shares soaring from under $6 to as high as $32.24 in late January. The shine has since worn off of the solar engineering, procurement and construction stock.

Shares are now back down below $13, but the stock’s 2.54 million float and 20.2% short percent of float make a short squeeze a real possibility.