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
TheStreet Open House

5 High-Yield Stocks That Look Ready to Pop

Stock quotes in this article: RY, CHT, TRI, PCL, SJR

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 large-cap short squeeze opportunities.

Royal Bank of Canada

First up is Canada's largest bank, Royal Bank of Canada (RY). With more than 15 million clients in 51 countries and over CAD 800 billion, RY is also one of the biggest diversified banks in all of North America. And just try getting this kind of yield out of a major U.S. bank -- RY currently pays out a 4.18% dividend yield. That hasn't kept short sellers from piling into this stock, however. Currently, RY's short interest ratio comes in at 22, which indicates it would take more than a month of buying pressure for short sellers to cover their bets at current levels.

While Canada's financial system didn't see quite the same shakeout that we saw stateside following the recession, big banks in our neighbor to the North took plenty of cues to shore up their balance sheets and raise capital. More recently, that meant RY's exit from the U.S. banking market this year, a move a pocket of risk from its own balance sheet and use the proceeds to invest in more suitable units. Today, Royal Bank of Canada sports a relatively high quality loan book and net margins that are more comparable to a highly profitable regional bank than one of the big-three U.S. banks.

While rising debt-to-income numbers for Canadian consumers is something investors should be cognizant of, the numbers aren't scary enough yet to outweigh RY's positive attributes. This stock is a very good candidate for a near-term short squeeze...

Chunghwa Telecom Co.

Taiwan's biggest telecom company, Chunghwa Telecom Co. (CHT), has been posting disappointing performance in 2012, with shares down slightly on the year thanks to concerns that the breakneck growth in Taiwan's economy could be coming to an end. That's also spurred short sellers to pile into this stock, shoving CHT's short interest ratio up to 24.3. But while this firm is down, it's hardly out...

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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