With the many huge upward and downward spikes taking place in the stock market recently, opportunities for short-squeeze plays abound.
A short squeeze takes place when the
short-sellers in a stock scramble to cover their bearish positions when that stock moves sharply upward; their buying ends up pushing shares even higher. Short positions of stocks are measured by the short-squeeze ratio, which represents the number of days it would take for the short-sellers to cover their positions based on the recent daily volume of the stock.
Stockpickr recently reviewed the stocks in the
index, extracted the stocks that have the highest short ratios as well as price/earnings-to-growth (PEG) ratios below 2 and compiled them in the
One of the stocks on the list is
, with a short ratio of 24. This health care diagnostic-testing company just received clearance from the Food and Drug Administration for two point-of-care tests, a whole blood test and a herpes simplex type-2 virus test. The stock has a
P/E ratio of 21.5, a PEG of 1.4 and a yield of 0.7%.
Quest shows up in an interesting Stockpickr portfolio called
, which includes such stocks as
, with a short ratio of 4.6, and
, with a 2.3 short ratio.
Jones Apparel Group
is another S&P 500 stock with a high short ratio. It would take 15.7 days for the short-sellers to cover their positions based on recent trading volume. The retailer recently delivered a solid third-quarter earnings beat. The stock has a P/E of 15, a PEG of 1.4 and a yield of 2.7%.
Jones is on the
, a portfolio on Stockpickr that lists the publicly traded companies that advertise in the high-end fashion magazine. Other Vogue stocks on the list are
, which has a 2.7 short ratio,
, with a short ratio of 2, and
, with a 4.2 short ratio.
International Flavors & Fragrances
, a stock with a 13.1 short ratio. It recently reported third-quarter results that revealed a 13% year-over-year increase in earnings per share (before items) on 8% revenue growth.
IFF is owned by
(ABMIX), a fund that's generated a one-year return of 17% plus. Its holdings include
, with a short ratio of 6.3, and
( ANDW), with a short ratio of 3.
For more S&P 500 stocks with high short ratios and PEG ratios below 2, check out the
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for
The Financial Times
and the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
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