Short squeezes take place when the
Nasdaq has plenty of stocks with high short ratios to choose from, but the key is finding the ones with good financials, such as
A Nasdaq stock with a very high short ratio is National Western Life Insurance (NWLIA), an annuity and life insurance company with a short ratio of 79.6. Last month, the company reported third-quarter earnings of $15.6 million, or $4.28 a share, down from $16.1 million, or $4.40 a share the year before. On a non-GAAP basis, however, it generated earnings from operations of $16.6 million, or $4.55 a share, up from $15.9 million, or $4.37 a share in the previous year. The stocks has a P/E of 9.2.
National Western shows up in Deep Value Picks, a Stockpickr portfolio that contains stocks that trade below book value. Other stocks in the portfolio include Capstead Mortgage (CMO), which has a short ratio of 2, Platinum Underwriters Holdings (PTP), with a short ratio of 6, and Stone Energy (SGY), with a short ratio of 4.6.Another stock with a high short ratio is Enstar Group (ESGR - Get Report), which acquires and manages insurance companies as well as underwrites insurance risks. It has a short ratio of 39.3. In November, the Bermuda-based company reported third-quarter net earnings of $2.6 million, or 21 cents a share, down sharply from the $11 million, or $1.10 a share, it posted a year ago. The stock has a P/E of 2.2.