Seeking Alpha

Days-ToShort %Short %Squeeze
# SharesCoverof FloatChangeRanking
TickerCompanyShort("DTC")("SPF")("SPC")("SR")
(CAC)Camden National 373,74426.05.9%19.13%29
(PSB)PS Business Park951,44018.16.0%22.12%32
(SAM)Boston Beer Co. 968,05116.010.3%28.01%46
(IDA)IdaCorp, Inc.4,035,49115.29.7%1.37%17
(COKE)Coca-Cola Bottli188,26114.84.8%22.94%2
(BPT)BP Prudhoe Bay R1,387,43710.80.0%6.22%N/A
(EYE)Advanced Medical10,765,7289.715.7%13.21%35
(HGIC)Harleysville Gro524,3509.31.7%25.55%8
(CHH)Choice Hotels In2,461,1978.77.3%3.79%54
(OGE)OGE Energy Corp.3,269,0558.63.7%21.49%7

The term "short squeeze" refers to the pressure on short sellers to cover their positions as a result of sharp price increases or difficulty in borrowing the security the sellers are short. The rush by short sellers to cover produces additional upward pressure on the price of the stock, which then can cause an even greater squeeze.

Print this article with comments

This article has 3 comments:

  •  
    How do you choose the stocks to list? It's strange to include a company like Harleysville, with less than 2% of its stock sold short, and omit a stock like Nautilus, with over 30% short interest. Somehow I doubt Harleysville is going to be subject to much of a squeeze.
    2006 Jul 12 11:04 AM | Link | Reply
  •  
    Hello Marco,

    Although the use of "short interest vs. total shares outstanding" is valuable information for some situations - the indicators best used for short squeezes are those that detect the impact of short interest on the price of the stock, such as average daily trading volume vs. outstanding short interest (Days To Cover) or Short Percent of Float to mention a two. Days to cover, for example helps identify the "easability" to cover (purchase) shares in a stock during the trading day. A stock with low average daily trading volume, relative to shares short (DTC) is a recipe for a greater impact on stock price. Concentration levels of short interest are one part of the equation. Stock performance is the second part. I have posted more details regarding Squeeze Theory for you to visit in the "tour" section of the website: www.shortsqueeze.com/S... . This will explain much more indepth dynamics that can cause huge changes in stock price.

    Good wishes and good trading,
    Dylan
    2006 Jul 12 02:01 PM | Link | Reply
  •  
    Just a quick question - what does "Squeeze Ranking (SR)" refer to? Is a lower or higher squeeze ranking preferable?

    Thank you!
    Brian
    2006 Jul 12 02:26 PM | Link | Reply
More by Dylan Wetherill
Other articles by Dylan Wetherill »