This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Top Nasdaq Short-Squeeze Plays

Updated from 8:36 a.m. EDT

The past month or so has seen a significant increase in the number of Nasdaq stocks with high short ratios, creating some interesting short-squeeze opportunities.

A short squeeze takes place when a stock's short-sellers scramble to cover their positions on good news, driving the price of the stock up sharply. The metric for measuring short-squeeze plays is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions, based on recent volume.

Stockpickr has come up with a list of the Top Nasdaq Short-Squeeze Plays for May.

One Nasdaq stock with a high short ratio is Steiner Leisure (STNR), a provider of spa services to cruise ship and resort customers, which has a short ratio of 33.9. This provider of massages, aromatherapy treatments, seaweed wraps and Pilates recently reported a 10.5% increase in quarterly revenue but a 1-cent drop in quarterly earnings per share. The stock has a P/E of 14 and a PEG of 1.2.

Steiner is part of the Stockpickr portfolio High ROIC, No Debt, Low P/S, which features stocks with a high return on invested capital, no debt and a low price-to-sales ratio. Other stocks in the portfolio include Natco Group (NTG), which has a short ratio of 6.5; Aaon (AAON), with a short ratio of 27; and American Eagle Outfitters (AEO), with a 2.5 ratio.

Another high short-ratio Nasdaq stock is Sinclair Broadcast Group (SBGI), a television broadcasting company, which has a short ratio of 33.1. The company just announced that it had quarterly earnings of 19 cents per share, compared with a loss of 3 cents per share for the same quarter a year ago. Revenue increased by 13% for the quarter. The stock has a P/E of 20 and a PEG of 1.47. The yield is 8.6%.

Sinclair is part of the Stockpickr portfolio Barron's Interview Hedge Fund Manager Steve Tananbaum, which includes the holdings of Tananbaum's company, GoldenTree Asset Management. Other stocks that GoldenTree owns include Time Warner (TWX), with a 2.1 short ratio; Liberty Global (LBTYA), with a short ratio of 8.2; and MGM Mirage (MGM), with a 5.1 ratio.

MGE Energy (MGEE), another Nasdaq stock with a high short ratio, is a public utility based in Madison, Wis. It has a short ratio of 32.5. The company recently reported its first-quarter financials, with a 16.5% increase in earnings compared with the first quarter of 2007. Revenue was up 12.9%. The stock has a P/E of 15 and a yield of 4.1%.

MGE is in the Stockpickr portfolio Top Dividend Raisers with Lowest P/Es. It also lists Cincinnati Financial (CINF), at a 3.2 short ratio, State Auto Financial (STFC), with a 18.4 ratio, and ParkerHannifin (PH), with a 3.8 ratio.

For more Nasdaq short-squeeze opportunities, check out the Top Nasdaq Short-Squeeze Plays for May portfolio at Stockpickr.com.

Stockpickr is a wholly owned subsidiary of TheStreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs