This Day On The Street
Continue to site
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

5 Foreign Stocks That Could Pop This Summer

BALTIMORE ( Stockpickr) -- "Buy American" has been a good catchphrase for investors in 2012. Even though the S&P 500's performance hasn't exactly been awe-inspiring of late, it's been a whole lot better than its foreign equivalents. While S&P's up around 4.5% so far this year, the MSCI Emerging Markets Index is down 2% and change on the year.

Emerging markets aren't alone. The MSCI EAFE Index, a world index, is down more than 4% so far this year. From the eurozone debt crisis to softening economies in markets like China, there's reason to steer clear of foreign stocks right now. But that doesn't mean that they're good reasons.

>>5 Stocks Set to Soar on Bullish Earnings

And now, with investor aversion to the risks of foreign stocks reaching highs, a handful of big overseas names are poised to pop from a short squeeze. Here's everything you need to know to take advantage:

In case you're not familiar with the term, a "short squeeze" is the buying frenzy that ensues when a heavily shorted stock starts to look attractive again to investors, causing share price to skyrocket. One of the best indicators of just how high a short-squeezed stock could go is the short interest ratio, which estimates the number of days it would take for short-sellers to cover their positions. The higher the short ratio, the higher the potential profits when the shorts get squeezed.

>>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now!

Naturally, these plays aren't without their blemishes -- there's a reason (economic or otherwise) that these stocks are being heavily shorted. But for investors looking for exposure to a speculative play with a beefier risk/reward tradeoff, these could be powerful upside plays for the coming year.

Without further ado, here's a look at our list of foreign short squeeze opportunities.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
SYM TRADE IT LAST %CHG
ACH $15.70 -1.90%
CHT $31.99 0.44%
IMO $39.19 -0.66%
LFL $8.42 1.80%
OIBR $2.07 0.49%

Markets

DOW 18,157.25 +115.71 0.64%
S&P 500 2,119.23 +15.03 0.71%
NASDAQ 5,080.5290 +47.7780 0.95%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs