When a company announces or is the subject of good news, its stock generally shoots higher. And generally, the lower-priced shares move upward much further on a percentage basis than higher-priced stocks.
Stockpickr has taken a look at stocks selling below $10 a share and pulled out the Top 10 Short Squeeze Stocks Below $10.
Besides trading for less than $10 each, these stocks have a few other things in common. They have short ratios greater than 10, a price/earnings-to-growth (PEG) ratio less than 2.75 and market caps greater than $300 million.
Remember, the short ratio, also known as the days-to-cover ratio, is the number of days it would take a stock's short-sellers 
to cover their positions based on recent daily trading volume. When the good news comes out, the short-sellers scramble to cover their bearish bets.
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