5 Short Squeeze Candidates To Watch: Huadi Tops List, Altimeter Group And Bit Digital Rejoin 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. 15.

Huadi International: Small cap Huadi International Group HUDI is a manufacturer of stainless steel pipes and tubes, used by numerous industries. Shares were trading under $4 to start October before running up over $28 on news of a contract award with an unnamed customer.

Fintel shows 21.8% of HUDI float shorted and a borrow cost of 172%. This borrow cost is one of the highest on record right now, according to Fintel.

Progenity: After topping the list for four straight weeks, biotech company Progenity Inc PROG comes in second place for the week of Nov. 15. Fintel shows 34% of the company’s float short and a borrow rate of 85.7% for PROG shares. Volume has fallen in the stock and shares are stuck in a range of $3 to $3.50 according to Fintel. The options market is showing a bullish bet on PROG shares with a put/call ratio of 0.19.

Related Link: 5 Short Squeeze Candidates To Watch: Progenity Tops List Again, Cassava Sciences Joins Following Short Report

Altimeter Group Corp: SPAC Altimeter Group Corp AGC rejoins the list after its merger partner Grab reported third-quarter results last week. Short interest is up 13% in AGC and stands at 38.8% of the company’s total float. Fintel shows a borrow rate of 24.8%. on AGC shares. Option traders remain bullish on AGC with a put/call ratio of 0.56.

Bit Digital: Bitcoin BTC/USD miner Bit Digital BTBT rejoins the Fintel short squeeze leaderboard with a fourth-place ranking. Fintel shows 8.5 million shares short, which is down from the previous week. Bit Digital has 20.5% of its float short and a cost to borrow of 114%, one of the week’s highest.

Synapotogenix: Biotechnology company Synaptogenix SNPX ranks fifth on the Fintel leaderboard for the week. Around 25% of Synaptogenix shares are float and the company has a small float of around six million shares. Short interest has risen 87% in the last month. Fintel shows a cost to borrow at 13.2%, which is lower than others on the leaderboard.