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Top Technology Short-Squeeze Plays

These heavily shorted stocks have the potential to surge higher on any positive news.

Updated from 6:13 a.m. EST

The market's recent volatility has sent a lot of technology stocks significantly lower in the past month. That downward pressure creates the possibility of a bounce higher, especially with the stocks that have been heavily shorted.

When heavily shorted stocks are met with positive news, a short squeeze can take place. As the stock price drives higher, short-sellers are forced to cover their bearish positions. Short-squeeze potential is measured by the short ratio, which is the number of days it would take the short-sellers to cover their positions, based on the stock's recent daily trading volume.

Stockpickr has put together

Top Technology Short Squeezes

, a list of 10 potential short-squeeze plays in the sector.

Quality Systems

(QSII)

has one of the highest short ratios among its technology stock peers, with a short ratio of 20. This health care information systems company is set to report fiscal third-quarter results after the market close. The stock offers a price-to-earnings (P/E) ratio of 25 and a yield of 3.3%.

Quality Systems is part of the portfolio of the

Turner Emerging Growth Fund

. The five-star Morningstar-rated fund also holds

Deckers Outdoor

(DECK) - Get Deckers Outdoor Corporation Report

, which has a short ratio of 6.9,

RTI International Metals

(RTI)

, with a 7.9 short ratio, and

Oceaneering International

(OII) - Get Oceaneering International, Inc. Report

, with a 1.4 short ratio.

Another highly shorted technology stock is

Raven Industries

(RAVN) - Get Raven Industries, Inc. Report

. This manufacturer of electronic and engineering products has a short ratio of 12. The stock, which was downgraded last week to sell by Piper Jaffray, has a P/E of 21 and a yield of 1.5%.

Raven shows up in

15 Diversification Candidates

, an interesting Stockpickr member portfolio from last year that lists stocks with low betas, low correlations to benchmarks and top-ranking performance. This portfolio also lists

Exactech

(EXAC)

, with a short ratio of 0.3,

Metal Management

(MM)

, with a 6.5 short ratio, and

Chesapeake Energy

TheStreet Recommends

(CHK) - Get Chesapeake Energy Corporation Report

, with a short ratio of 7.

Dionex

(DNEX)

is yet another tech stock with a high short ratio -- 13.2. This manufacturer of analytical instrumentation products just last week reported a fiscal second-quarter sales increase of 17% and earnings per share of 77 cents, vs. 68 cents for the same quarter last year. The stock has a P/E of 32.

Dionex is a stock owned by

Richard Aster Jr.

, founder of Aster Investment Management. Aster also owns

Willis Group

(WSH)

, with a short ratio of 1,

Diebold

(DBD) - Get Diebold Nixdorf Incorporated Report

, with a 2.7 ratio, and

BE Aerospace

(BEAV)

, with a 2.9 short ratio.

To see the entire more potential short-squeeze plays in the tech sector, check out the

Top Technology Short Squeezes

at Stockpickr.com.

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

and

SuperCa$h

. 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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