Updated from 9:45 a.m. EDT
One potential way to make a swift gain on a stock is through a short-squeeze play. A short squeeze takes place when a stock's price rises on good news and the stock's short-sellers scramble to cover their bearish positions. This short-covering, in turn, drives the price of the stock even higher.
The ratio for measuring a short-squeeze play is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions based on the stock's recent trading volume.
Stockpickr has combed through the heavily shorted stocks on the New York Stock Exchange and compiled the Top NYSE Short Squeeze Plays portfolio.One of the stocks with a high short ratio is Marine Products (MPX - Get Report), the recreational fiberglass powerboats manufacturer, which has a short ratio of 53.2. The company just announced that its first-quarter earnings increased by 5% primarily due to a lower tax rate. The stock has a P/E of 17, a PEG of 2.39 and a yield of 3.3%.
Get Shrewd, Get Filthy Rich