BALTIMORE (Stockpickr) -- While most investors think of Wall Street's biggest companies as the most stable, financially sound stocks out there, the truth is that there are plenty of investors who are betting on blue-chip stocks to fall.Despite the fact that the most secure blue-chips are large-cap stocks -- companies with market capitalizations of $10 billion or greater -- there are more than a few big firms with major economic headwinds, flawed financials or another catalyst that could send shares lower. When that happens, the short-sellers go into attack mode; particularly in 2010, with the remnants of 2008's bear market still fresh in investors' minds. But with that heavy shorting can come the opportunity for bullish investors to profit from the squeeze. A short squeeze -- the buying frenzy that ensues when a heavily shorted stock starts to look attractive again to investors, causing share price to skyrocket -- is just the catalyst these stocks need right now. >>Also: 3 Earnings Short-Squeeze Stocks One of the best indicators of just how high a short-squeezed stock could go is the short interest ratio, which divides shares short by average daily trading volume in order to get a ballpark estimate of the number of days it would take for short-sellers to cover their positions. The higher the short ratio, the higher the potential profits when the shorts get squeezed. And with better analyst coverage and more trading activity in large stocks, the potential for a fast short squeeze is greater in the large-cap world. We originally took a look at potential large-cap short squeezes back in February. Now, with 2011 ahead of us, here's a look at a new set of potential large-cap short squeeze opportunities.
A $79 billion Canadian banking giant, Royal Bank of Canada ( RY - Get Report) may weigh in as Canada's largest bank, but that hasn't spared the firm from facing a similar fate as its contemporaries to the south.
There's plenty of reason to be bullish about Waste Management ( WM - Get Report) right now. For starters, the firm is the league leader in the waste business, with nearly 20 million customers under its belt. Waste has long been a favored industry because of its recession resistance -- an especially attractive attribute when times are tough.
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