This Day On The Street
Continue to site right-arrow
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!

3 Resource Stock Short-Squeeze Opportunities

Stocks in this article: BRY GAS TAC


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Nicor (GAS - Get Report) is a regulated natural gas utility that services more than 2 million customers in Northern Illinois, an area where Nicor enjoys legal monopoly status. A merger announcement with AGL Resources (AGL) in December likely means that Nicor shareholders will soon be AGL shareholders, at an acquisition price of $54.01 per share at current prices. Nevertheless, short-sellers are betting heavily against shares: A short ratio of 15 suggests that a full 8% of Nicor's available float is short.

That short interest is significant for a few reasons. Even though Nicor's shares are only trading for a tiny risk discount to the merger price, forced buying of such a large chunk of the stock's available float is likely to drive GAS' prices up considerably higher than the merger value, creating a gain opportunity for traders willing to take advantage.

Because AGL's business is both similar and complementary to Nicor's, it's likely that the merger will go as planned. In that case, it'll be interesting to see the fallout from short-sellers who don't want to remain short when shares of GAS convert to cash and appreciating shares of AGL.

With an A- buy rating from TheStreet Ratings, Nicor is one of the top-rated gas utility stocks.

3 of 4

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!


DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

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