This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Top Big Board Short-Squeeze Plays

Updated from 7:09 a.m. EDT

With many market pundits declaring a market bottom, it may prove profitable to take a look at heavily shorted stocks that have the potential to soar on positive news.

A short squeeze occurs when positive news sends short-sellers, or those betting against the stock, to scramble to cover their bearish positions. This short-covering, or buying, causes the stock to spike even higher.

The primary metric for the short squeeze is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their short positions, based on the stock's average daily trading volume.

Stockpickr has compiled Top Big Board Short-Squeeze Plays, a list of the heavily shorted stocks that trade on the New York Stock Exchange and have the greatest potential to rise based on their short ratios.

One of the NYSE stocks with the highest short ratios is Alleghany (Y - Get Report), a property and casualty insurance company with a short ratio of 30.4. The stock has a trailing price-to-earnings (P/E) ratio of 10.6.

Alleghany appears in the portfolio of the Royce Total Return Institutional Fund, managed by Charles Royce. With an objective of long-term growth of capital and current income, the fund also holds AllianceBernstein (AB), with a short ratio of 1; Reliance Steel & Aluminum (RS - Get Report), with a 2.4 short ratio; and Leucadia National (LUK - Get Report), with a 6.7 short ratio.

Another NYSE stock with a high short ratio is GenCorp (GY), an aerospace and defense manufacturer with a short ratio of 32. The company last week posted first-quarter results that showed a sharp drop in profits but a 16% rise in sales over last year. The stock has a trailing P/E of 13.8.

GenCorp stock is owned by Steel Partners, a San Francisco-based hedge fund managed by Warren Lichtenstein. The fund also owns shares of Rowan (RDC - Get Report), which has a 3.8 short ratio; Brinks (BCO - Get Report), which has a 4 short ratio; and Ikon Office Solutions (IKN), with a short ratio of 8.1.

Marine Products (MPX - Get Report) is another Big Board stock with a high short ratio. This manufacturer of fiberglass powerboats has a short ratio of 36.5. In January, the company approved the buyback of an additional 3 million shares of its common stock. The stock has a forward P/E of 14.5, a P/E-to-growth ratio of 2.4 and a yield of 3.1%.

Marine Products shows up in the Stockpickr portfolio called Top Dividend Increasers for the Week Ending Jan. 26. The portfolio also includes Home Bancshares (HOMB), with a short ratio of 26.8, and Donaldson (DCI), with a short ratio of 7.

For more heavily shorted stocks, check out the Top Big Board Short-Squeeze Plays at

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Gen Corp and Marine Products to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the Financial Times and the author of Trade Like a Hedge Fund , Trade Like Warren Buffett and SuperCa$h . Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email. has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
GY $0.00 0.00%
BCO $33.84 0.00%
LUK $16.68 0.00%
MPX $8.19 0.00%
RDC $18.81 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs