Top NYSE Short-Squeeze Stocks
The recent drop in real estate and mortgage stocks pulled down a lot of other high-quality stocks, creating some potential short-squeeze trading opportunities. A short squeeze takes place when the short-sellers of a stock scramble to cover their bearish positions when the stock moves sharply upward.
A stock's short position is measured by the short-squeeze ratio, which represents the number of days it would take for the short-sellers to cover their positions based on the stock's recent daily trading volume.
Stockpickr has put together a list of the top 10 short squeeze stocks that trade on the New York Stock Exchange. All of these stock price/earnings-to-growth (PEG) ratios of 3 or less and short ratios greater than 17.
One heavily shorted NYSE stock is Kingsway Financial Services (KFS), a Canada-based property and casualty insurance company with a short ratio of 31.2. The company just announced a plan to buy back up to 2.8 million shares of stock on the Toronto Stock Exchange. During the last 12 months, the company bought back 563,600 shares. KFS has a price/earnings (P/E) ratio of 9.2, a PEG ratio of 1.1 and a yield of 1.7%.Kingsway stock is owned by Abingdon Capital Management, a McLean, Va.-based money manager that specializes in looking for stocks for which there is a large difference between price and value. Abingdon also owns Fidelity National Information Services (FIS), which has a short ratio of 0.7, NRG Energy (NRG), with a 6.8 short ratio, and Supervalu (SVU), which has a short ratio of 2.5.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV