Top Nasdaq Short-Squeeze Plays - TheStreet

Top Nasdaq Short-Squeeze Plays

These heavily shorted stocks could soar on any positive catalyst.
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Updated from 8:36 a.m. EDT

The past month or so has seen a significant increase in the number of

Nasdaq

stocks with high short ratios, creating some interesting short-squeeze opportunities.

A short squeeze takes place when a stock's short-sellers scramble to cover their positions on good news, driving the price of the stock up sharply. The metric for measuring short-squeeze plays is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions, based on recent volume.

Stockpickr has come up with a list of the

Top Nasdaq Short-Squeeze Plays for May

.

One Nasdaq stock with a high short ratio is

Steiner Leisure

(STNR)

, a provider of spa services to cruise ship and resort customers, which has a short ratio of 33.9. This provider of massages, aromatherapy treatments, seaweed wraps and Pilates recently reported a 10.5% increase in quarterly revenue but a 1-cent drop in quarterly earnings per share. The stock has a P/E of 14 and a PEG of 1.2.

Steiner is part of the Stockpickr portfolio

High ROIC, No Debt, Low P/S

, which features stocks with a high return on invested capital, no debt and a low price-to-sales ratio. Other stocks in the portfolio include

Natco Group

(NTG) - Get Report

, which has a short ratio of 6.5;

Aaon

(AAON) - Get Report

, with a short ratio of 27; and

American Eagle Outfitters

(AEO) - Get Report

, with a 2.5 ratio.

Another high short-ratio Nasdaq stock is

Sinclair Broadcast Group

(SBGI) - Get Report

, a television broadcasting company, which has a short ratio of 33.1. The company just announced that it had quarterly earnings of 19 cents per share, compared with a loss of 3 cents per share for the same quarter a year ago. Revenue increased by 13% for the quarter. The stock has a P/E of 20 and a PEG of 1.47. The yield is 8.6%.

Sinclair is part of the Stockpickr portfolio

Barron's Interview Hedge Fund Manager Steve Tananbaum

, which includes the holdings of Tananbaum's company, GoldenTree Asset Management. Other stocks that GoldenTree owns include

Time Warner

(TWX)

, with a 2.1 short ratio;

Liberty Global

(LBTYA) - Get Report

, with a short ratio of 8.2; and

MGM Mirage

(MGM) - Get Report

, with a 5.1 ratio.

MGE Energy

(MGEE) - Get Report

, another Nasdaq stock with a high short ratio, is a public utility based in Madison, Wis. It has a short ratio of 32.5. The company recently reported its first-quarter financials, with a 16.5% increase in earnings compared with the first quarter of 2007. Revenue was up 12.9%. The stock has a P/E of 15 and a yield of 4.1%.

MGE is in the Stockpickr portfolio

Top Dividend Raisers with Lowest P/Es

. It also lists

Cincinnati Financial

(CINF) - Get Report

, at a 3.2 short ratio,

State Auto Financial

(STFC) - Get Report

, with a 18.4 ratio, and

ParkerHannifin

(PH) - Get Report

, with a 3.8 ratio.

For more Nasdaq short-squeeze opportunities, check out the

Top Nasdaq Short-Squeeze Plays for May

portfolio at Stockpickr.com.

Stockpickr is a wholly owned subsidiary of TheStreet.com.