A Stock Strategy for Small Floats and High Shorts

Hoku Scientific (HOKU Quote - Cramer on HOKU - Stock Picks) is an interesting short-squeeze candidate with a very low float of 12 million shares and a short interest of more than 20%. This Hawaii-based company makes materials and components for the generation of electricity from clean energy technologies. Think solar panels and fuel cells.

Hoku has soared more than 247% year to date, but the stock has pulled back to around $10 off of the 52-week high of $14.55. The company recently announced it has gained the contracts to build a polysilicon plant to manufacture important components of solar panels. This is a small-cap stock with an average daily volume of around 3.5 million, so it does have trading liquidity for now.

Next up for a potential candidate is Crocs(CROX Quote - Cramer on CROX - Stock Picks), which has a float of 64 million shares and a short interest of 16%. The famous maker of plastic clogs for men, women and children also manufactures apparel and accessories such as T-shirts, hats and socks. Crocs recently announced plans to offer a clothing line for men and children.

Jeffrey Klinefelter, a Piper Jaffray analyst, rates the stock as outperform, and he cites the hiring of more sales people in markets such as China and Brazil as a reason to remain bullish on this growth story. The stock is up a whopping 165% year to date, and it's trading just below the 52-week high of $61.99, which is a sign of strength.

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