5 Short Squeeze Candidates To Watch: Pioneer Power, NuZee Remain At The Top, Grab Rejoins The Leaderboard

Potential short squeeze plays have gained steam in 2021 with new retail traders looking for the next huge move. GameStop Corp (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC) are two high-profile examples of short squeezes earlier this year.

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 to buy in and cover their position, which has caused shares to go much higher on many occasions.

Fintel Data: Data from Fintel, which requires a subscription, provides a look at some of the top shorted stocks and the data that shows how likely a short squeeze is to happen.

This week’s list of five top short squeeze candidates contains three names from last week and sees two former leaders return.

Here is a look at Fintel’s top five short squeeze candidates for the week of Dec. 6.

Pioneer Power Solutions: Electrical transmission and power generation equipment company Pioneer Power Solutions Inc (NASDAQ: PPSI) tops the short squeeze leaderboard for the second straight week. Raw short interest is up over 5,000% from the previous report with 40.9% of the float short. Fintel reports a cost to borrow of 109%, up from last week’s already high 80.2%.

Related Link: 5 Short Squeeze Candidates To Watch: Pioneer Power Tops List Along With Newegg, NuZee And More 

NuZee Inc: Coffee company NuZee Inc (NASDAQ: NUZE) remains in second place on the leaderboard for the second straight week. Fintel reports 11.2% of the float being short. Raw short interest has risen over 1,600% since the last report. The cost to borrow on shares is now 152%, up from last week’s 136%.

RenovoRx Inc: Biotechnology company RenovoRx Inc (NASDAQ: RNXT) rises one place to come in third on this week’s leaderboard. Around 10% of the float is short, in line with last week’s figure. Short interest has seen a 1,400% increase going from 42,000 shares to over 643,000 shares in the latest report. The cost to borrow on shares fell to 71% for the week, compared to 101.7% last week.

Grab: Rideshare and food delivery Grab Holdings Inc (NASDAQ: GRAB) has been a frequent name on the short squeeze leaderboard via the Altimeter Growth SPAC that took it public. Grab completed the SPAC merger and rejoins the leaderboard with high short interest. Fintel shows 19.7 million shares short, representing 31.5% of the total float. Short interest has increased only slightly in the latest report, which could mean short-sellers are not adding to positions. The cost to borrow on GRAB is 174%, which is the highest on the list.

Cortexyme: Biotechnology company Cortexyme Inc (NASDAQ: CRTX) rejoins at fifth place. The company, which is working on treatments for Alzheimer’s Disease, has 50% of the float short. This ranks high on the Fintel list of total float percentage shorted. The cost to borrow on shares is 10%, which is why the stock comes in at fifth place and not higher.