I like stocks that have "battles" going on. There are two types of investment battles that can create the sharpest rallies: activist investors vs. company management and short-sellers vs. insiders.
Today I'll focus on the latter -- when a lot of investors are betting that a stock will go down, but the insiders of the company are betting that the stock will go up. In such cases, I place my bets with the insiders.
Why? Insiders know what's going on, and they are putting their money where their mouths are. When the shorts have to cover, it creates a squeeze situation, which could cause shares of a company to go up sharply.
At Stockpickr we keep track of the top 10 potential short squeezes -- a list of stocks with high short interest and high insider buying. We update this portfolio every two weeks. ...
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