Below are a list of small-cap stocks that have been heavily shorted
by the street, and should the market or the individual stock start
rallying, could really see its share price launch into the stratosphere
because of the bears being forced to cover their short positions in the
stock. No joke, based on the number of shares that are being
borrowed, for some of these stocks, it could take as many as 50 days to
cover all the shares held short in the stock.
If you don't know what a short squeeze is, it is where a stock starts
to rise rapidly, and as the trend continues to escalate, the short
sellers will likely want out. For example, say a stock rises 15% in one
day, those with short positions may be forced to liquidate and cover
their position by purchasing the stock. If enough short sellers buy
back the stock, the price is pushed even higher.
Originally by Ryan Mallory on his blog at SharePlanner.com
