Top 10 Potential Short Squeezes

It seems everyone knows someone who either got killed or made a killing in the short squeezes of the Internet boom. At the time, it was more about momentum than fundamentals or short-interest ratios. After all, no one really cared about that stuff in the late '90s anyway. Fast forward to 2007: There are still short squeezes, but they require a great deal of care.

Each month, I write a column on the latest potential short squeezes. At Stockpickr, we identify the top 10 stocks that exhibit both high short interest and a high rate of insider buying, and we compile these names in the 10 Short Squeezes portfolio.

With these stocks, you've got to wonder who knows more: the CEO and other insiders at the company or the random daytraders betting against the company.

There are many stocks right now that could make good candidates for a squeeze; here are two of them.

First is NutriSystem(NTRI Quote), a company that provides weight management and fitness products and services in the U.S. The company announced blowout earnings this past quarter, increasing revenue by 62% year over year.

"The solid growth of our core women's market and continued strength of the men's market allowed us to achieve record earnings," CEO Michael Hagan said. "In addition, an integral part of our first quarter has been the ongoing expansion of our pool of ex-customers and their desire to return to NutriSystem for weight-management services."