Updated from 8:59 a.m. EDT

One way to make a quick profit on a stock is through a short-squeeze play. A short squeeze takes place when a stock's price rises on good news and the stock's short-sellers scramble to cover their bearish positions. This short-covering, in turn, can drive the price of the stock even higher.

The ratio for measuring a short-squeeze play is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions, based on the stock's recent trading volume.

Stockpickr has compiled a portfolio of the

top New York Stock Exchange short-squeeze plays

for the month of July, a list of heavily shorted stocks that trade on the


and have the greatest potential to rise based on their short ratios.

One NYSE stock with a high short ratio is

Simpson Manufacturing

(SSD) - Get Report

, a manufacturer of building products, which has a short ratio of 58.6. The company just announced that it has acquired ProTech Systems, a New York-based manufacturer of venting products, for $7.5 million. The stock has a P/E of 19, a PEG of 21.68 and a yield of 1.6%.

Simpson is owned by

Royce & Associates

, a hedge fund that specializes in investing in smaller stocks that are trading significantly below the fund's estimate of their current worth. Royce also owns

Lincoln Electric

(LECO) - Get Report

, with a short ratio of 3.6;


(UNT) - Get Report

, with a ratio of 2.7; and

Knight Capital Group


, with a ratio of 8.0.

Another NYSE stock with a high short ratio is

Tootsie Roll Industries

(TR) - Get Report

, the candy manufacturer and distributor. The stock has a short ratio of 50.9. The company reported a 34.2% drop in earnings for the latest quarter on a revenue drop of 3.2%. The stock has a P/E of 32 and a yield of 1.2%.

Tootsie Roll is also owned by

the Wells Fargo Advantage Mid Cap Fund

, a four-star fund managed by Robert Costomiris. The fund has had an average annual return of 19.1% over the last five years. It also holds


(KR) - Get Report

, with a 4.1 short ratio; another candy company,


(HSY) - Get Report

, with a 10.4 ratio; and

Coca-Cola Enterprises


, with a 3.5 ratio.

Thor Industries

(THO) - Get Report

is another NYSE stock with a high short interest, with a short ratio of 38. This manufacturer of recreational vehicles reported a reduction of 21.7% in earnings for the latest quarter. The stock has a P/E of 9 and a PEG of 0.83, and it pays a yield of 1.2%.

Thor is owned by the

Pennsylvania Mutual Fund

, which was featured in


magazine's 2007 investors' guide as one of the seven funds to own in that year. It has had an average total return of nearly 16% annually over the past 30 years. Penn Mutual also owns


(AB) - Get Report

, with a 1.4 short ratio, and

Woodward Governor

( WGOV), with a short ratio of 6.3. For the rest of the list, check out the

Top NYSE Short-Squeeze Plays

portfolio at Stockpickr.com.

Stockpickr is a wholly owned subsidiary of TheStreet.com.