Aug 30, 2021 (Penny Stocks via COMTEX) -- Are Short-Squeeze Stocks Your Focus Today?
The trend we're seeing in the stock market today has everything to do with momentum. While penny stocks are well-known for their ferocious swings in price, other factors at play can amplify that aggressive volatility. This month a few companies, most recently Support.com ( NASDAQ: SPRT ) sparked excitement in stocks with high short interest.
Now, I'll be the first to say that this isn't a new trend. But it has become a cyclical one in nature this year. We saw it early on with stocks like AMC Entertainment ( NYSE: AMC ), GameStop ( NYSE: GME ), and other "meme stocks" thanks to a unified front from retail traders. That trend subsided during the end of Q1 and the start of Q2 then restarted toward the beginning of Q3 with sporadic pockets of this trend continuing to pop up weekly.
The most recent breakout of SPRT stock triggered a large-scale hunt for stocks with similar features. While the company's pending merger has it wrapped into the popular cryptocurrency industry, that isn't the main reason traders flocked to the former penny stocks . With a listed float of under 20 million shares and a short percentage of roughly 40%, the "perfect storm" for a mega squeeze materialized into one of the most epic breakouts of the year.
So now, traders are seeking out set-ups with similar details. In this article, we'll take a closer look at a few penny stocks with higher short interest. Will they be the next group of "short squeeze stocks" to watch before Q3 ends?
Short Squeeze Penny Stocks To Buy [or avoid]
Clovis Oncology ( NASDAQ: CLVS )
Exela Technologies ( NASDAQ: XELA )
SmileDirectClub ( NASDAQ: SDC )
Best Inc. ( NYSE: BEST )
Clovis Oncology /zigman2/quotes/201295534/composite CLVS -1.33%
In our article last week, " 4 Short Squeeze Penny Stocks To Watch After SPRT Stock's 1,309% Run " we discussed Clovis in this elite group of stocks. While the company doesn't have the lowest float coming in the hundred million-plus category, the listed short float is hovering around 27% right now.
The company focuses on developing cancer treatments but up until recently, there's been more bad news than good. For instance, clinical data on its FAP-2286 platform failed to impress the market earlier in the year. This was followed up by poor earnings results. However, as the former turns into the second half of the year, traders are focusing on other things; short interest included.
Clovis' lead candidate, Rubraca has also gotten some recent attention. This treatment is being developed for numerous cancer tumor types. Ovarian and prostate are among the different cancer tumors and the treatment is already approved in the US for maintenance treatment in adults with recurrent epithelial, ovarian, fallopian tube, or primary peritoneal cancers. Last week, Clovis announced that Rubraca is now available and reimbursed in Switzerland. With this latest expansion and renewed interest, thanks to its short interest, CLVS stock has gotten some attention this week.
Exela Technologies /zigman2/quotes/207382046/composite XELA -1.73%
Another one. of the penny stocks gaining attention for its higher short interest is Exela Technologies. In looking at a few outlets, the short float percentage is sitting around 20%. While it isn't the highest on the list, it is a relatively higher level of short. Needless to say, the last few sessions have been bullish in the market. Furthermore, while daily volatility is apparent, the overall trend since the end of the second quarter has pushed higher.