This Day On The Street
Continue to site
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 Short-Squeeze Stocks Primed to Pop

Liberty Global

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

Get Adobe Flash player

Cable and satellite network owner Liberty Global ( LBTYA) is the poster child for a growth-by-acquisition strategy. That at least accounts for part of the reason why the firm has sported such a hefty short interest ratio in 2013. As merger arbitrage traders pile into positions against Liberty, they've ratcheted up the firm's short interest to 15.68.

If nothing else, it's a reminder that it doesn't matter why a stock is heavily shorted, only that it is. Right now, it would take more than three weeks of buying pressure at current volume levels for short sellers to exit their positions in Liberty.

>>4 Big Stocks on Traders' Radars

Liberty owns cable networks, satellite TV operators and phone and Internet providers in more than a dozen countries in Europe and Latin America. Those are high-moat businesses -- because Liberty owns the infrastructure that powers those utilities, the barriers to entry are extremely high for any potential rivals. Liberty's global acquisition spree has yielded a firm that carries considerable debt that's offset by considerable cash flow. That leverage in an environment where rates have slowly been rising doesn't exactly help with LBTYA's short interest. As long as management starts to pare down its appetite, Liberty's financial health isn't at risk.

Meanwhile, Liberty's experience operating cable networks in scores of countries gives it unique positioning -- it's able to modernize business models in developing countries and generate substantial cash from its more mature networks. As the firm's networks continue to growth their revenues per subscriber, Liberty's share price should continue growing too.
2 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DGX $74.99 0.20%
LBTYA $37.29 -0.77%
MTB $114.12 -2.20%
RMD $56.03 0.70%
SYY $48.52 0.02%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs