Investor Alert

Aug. 30, 2021, 10:47 a.m. EDT

Most Shorted Penny Stocks To Buy Today? 4 To Watch As AMC Stock Pops

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    Clovis Oncology Inc. (CLVS)
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    Exela Technologies Inc. (XELA)
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    SmileDirectClub Inc. (SDC)

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Exela specializes in business automation solutions. most recently its Smart Office Suite was named a "Hot Vendor" in Aragon Research's "Workflow and Content Automation" report. "Innovation is the cornerstone of any successful digital transformation initiative, and Exela is proud to be at the forefront. We believe that being recognized as a "Hot Vendor" in Workflow and Content Automation Solutions, showcases our digital-first approach in allowing enterprises to be nimble and resilient in tough market conditions," said Srini Murali, Exela's President, Americas, & APAC.

With a push toward a more digital ecosystem, technologies like Exela offer have come into focus. In particular, the company reported strong Q2 growth thanks to the expansion of its digital solutions for small business clients. Exela has also begun launching products globally. This includes the e-sign platform DrySign, in India as well as its Digital Mail Room, which was launched in the United Kingdom, France, & Germany over the last few months.

SmileDirectClub /zigman2/quotes/214109287/composite SDC +8.89%

One of the companies that recently became a penny stock and continues hovering around the upper threshold of the $5 level is SmileDirectClub. Since its IPO, SDC stock has experienced a wild market trend with the most recent seeing it reach lows of $4.63 this month. However, with a short float percentage of around 32%, it has gained the interest of retail traders this week.

Something else that is helping give a boost to dental care stocks, in general, is a New York Times report that came out this weekend. In it, are detail discussed that suggest Medicare may cover dental care thanks to a new proposal on Capitol Hill. Nevertheless, eyes are now on what the company plans on doing next to correct its current course. After coming up short on earnings, David Katzman, CEO of SmileDirectClub explained that the company's singular focus Is on "maximizing [its] global opportunity and extending [its] leading telehealth platform for orthodontia."

This focus on international growth could see operations restart in certain locations. Germany and Spain are two target markets that SmileDirectClub has expressed interest in marketing to as it relaunches marketing efforts. Given all of this as the backdrop, SDC stock could be one to watch during the second half of 2021.

Best Inc. /zigman2/quotes/207190807/composite BEST -22.86%

One of the lower-priced penny stocks on this list is Best Inc. The company offers supply chain solutions and logistics services to its clients in China. Recent earnings results have helped spur a bullish tone in the stock market for BEST stock. The company beat earnings per share estimates during the quarter as supply chain processes began to stabilize a bit more.

This week, attention seems to be focused on the current short position in BEST stock. As of today, that figure hovers around 36%. Similar to CLVS, BEST doesn't have the lowest float but market momentum seems to have picked up a bit at the start of the week. We'll see how the market reacts as August comes to an end and September begins.

Are Short Squeeze Stocks Worth It?

When it comes to any major technical event volatility could play a big role. Just look at the breakouts and breakdowns of some of the more popular names in the category. AMC, GME, even SPRT, all of these former penny stocks saw explosive moves higher. But swift drops lower followed before the stocks found footing. If you're looking at potential "short squeeze stocks" right now, keep that in mind. While there is an opportunity for higher rewards, the risk is a big piece of the puzzle to account for.


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US : U.S.: Nasdaq
$ 1.47
+0.12 +8.89%
Volume: 2.30M
May 20, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$572.85 million
Rev. per Employee
$ 1.08
-0.32 -22.86%
Volume: 3.43M
May 20, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$84.15 million
Rev. per Employee

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