BALTIMORE ( Stockpickr) -- With a new year come new opportunities to profit from over-shorted stocks.
In 2009, health care was one of the big sectors that lagged the S&P 500 by a substantial clip as investors skirted health stocks amid pending reform legislation on Capitol Hill. All told, health care plays made a paltry 7.46% bounceback in 2009, compared with 22% gains for the S&P 500 index.
That leaves health care -- as a sector -- well below levels seen in early 2008. Now that investors are starting to feel more comfortable investing in health care stocks, however, the potential for some profitable short squeezes is coming to a head. That's why this week, we're focusing our short-squeeze picks on health-related stocks of all sorts.
A short squeeze -- the buying frenzy that ensues when a heavily shorted stock starts to look attractive again to investors, causing share price to skyrocket -- is just the catalyst these stocks need right now.Each week, Stockpickr creates a portfolio of stocks with high short interest ratios and the catalysts to trigger a squeeze. Here's a look at this week's potential plays, which focus on health-related stocks.