Top Short-Squeeze Plays

09/22/08 - 12:18 PM EDT

James Altucher

Updated from 7:02 a.m. EDT

One of the best times to invest in short-squeeze plays is after sharp drops in the stock market, similar to what we've seen over the last several days.

A short squeeze takes place when a stock's short-sellers scramble to cover their bearish positions when that stock moves sharply upward; their buying ends up pushing shares even higher. Short positions of stocks are 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 recent daily volume of the stock.

Stockpickr has come up with a list of the top New York Stock Exchange short-squeeze plays for the month of September, including Thor Industries(THO Quote - Cramer on THO - Stock Picks) and Tempur-Pedic(TPX Quote - Cramer on TPX - Stock Picks).

To read more, please click here.

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 TheStreet.com 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.

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