Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)

The following is a list of stocks with a high short float, meaning that a significant portion of the company's shares have been shorted. All of the stocks mentioned in this list have short floats higher than 20%.

Despite the apparent excessive pessimism, these companies appear to have enough liquidity to fulfill their upcoming liabilities. All of these companies have higher quick ratios and interest coverage ratios than their competitors.

Short sellers seem to think that these companies are in trouble. But all of these companies have good liquidity, raising the possibility of a short squeeze--what do you think?

Liquidity data sourced from Reuters, short float data sourced from Finviz.

Interactive Code: Press Play to see how the market caps have changed for all the stocks mentioned below.

1. Intrepid Potash, Inc. (NYSE:IPI): Nonmetallic Mineral Mining Industry. Market cap of $2.37B. MRQ quick ratio at 3.25 vs. industry average of 0.7. MRQ interest coverage ratio 42.24 vs. industry average of 0.79. Short float at 20.15%, which implies a short ratio of 8.47 days. The stock has gained 4.49% over the last year.

2. Cal-Maine Foods, Inc. (NASDAQ:CALM): Farm Products Industry. Market cap of $779.9M. MRQ quick ratio at 2.38 vs. industry average of 0.84. MRQ interest coverage ratio 17.72 vs. industry average of 0.06. Short float at 29.61%, which implies a short ratio of 18.77 days. The stock has gained 19.6% over the last year.

3. Synaptics Inc. (NASDAQ:SYNA): Computer Peripherals Industry. Market cap of $1.04B. MRQ quick ratio at 3.26 vs. industry average of 1.1. MRQ interest coverage ratio 15.69 vs. industry average of 0.31. Short float at 33.47%, which implies a short ratio of 15.33 days. The stock has gained 13.17% over the last year.

4. Allegiant Travel Company (NASDAQ:ALGT): Regional Airlines Industry. Market cap of $995.36M. MRQ quick ratio at 1.26 vs. industry average of 0.8. MRQ interest coverage ratio 87.66 vs. industry average of 0.04. Short float at 34.19%, which implies a short ratio of 20.32 days. The stock has gained 14.98% over the last year.

5. STR Holdings, Inc. (NYSE:STRI): Semiconductor Industry. Market cap of $852.64M. MRQ quick ratio at 3.41 vs. industry average of 1.43. MRQ interest coverage ratio 2.45 vs. industry average of 0.14. Short float at 22.85%, which implies a short ratio of 12.79 days. The stock has gained 66.08% over the last year.

6. James River Coal Co. (JRCC): Industrial Metals & Minerals Industry. Market cap of $632.83M. MRQ quick ratio at 2.93 vs. industry average of 1.28. MRQ interest coverage ratio 1.88 vs. industry average of 0.12. Short float at 21.5%, which implies a short ratio of 6.98 days. The stock has gained 32.44% over the last year.

7. NutriSystem Inc. (NASDAQ:NTRI): Consumer Services Industry. Market cap of $536.8M. MRQ quick ratio at 2.06 vs. industry average of 1.59. MRQ interest coverage ratio 4.58 vs. industry average of 0.12. Short float at 32.99%, which implies a short ratio of 26.11 days. The stock has lost -28.3% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Squeeze Ideas: 7 Highly Shorted Stocks With Good Liquidity