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Bill Maurer
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Bill Maurer, in addition to writing for Seeking Alpha, is currently a part-time trader. Bill holds a Bachelor of Science Degree from Lehigh University, where he double majored in Finance and Accounting, with a focus on Investments and Financial Analysis. While at Lehigh, he was a Head Portfolio... More
  • Two Short Squeezes Came, Don't Get Greedy, And Don't Miss The Next One 0 comments
    Jul 1, 2014 2:19 PM | about stocks: SCTY, DDD

    Recently, I've had a couple of articles about potential short squeezes that have been great for investors. I first started out discussing 3D Systems (NYSE:DDD) in early June, noting how short squeeze potential was definitely there. When the article was published, shares were in the low $50s, and they bottomed a few days later in the high $40s. Since that original article, the company raised its 2014 revenue forecast, and the investor/analyst day was mostly seen as positive. For those reasons, along with a further increase in short interest, I reiterated the short squeeze notion earlier this week. On Tuesday, a short squeeze definitely seemed to happen, pushing shares above $69 at their highest point. Even if you didn't get in quite at the bottom, you could have easily made 30% or more in a month. This was a winning trade, and it might continue to work over time. But investors should not fear taking a profit, because this would certainly be a nice gain to take.

    During the middle part of June, I also detailed how SolarCity (NASDAQ:SCTY) might be good for a short squeeze. Shares of the name were around $50 at the time, and now they are over $71. Shares of SolarCity recently popped after the company announced it would buy Silevo. Between these two firms, the possibility exists that a huge plant could be built with a capacity greater than 1GW. Again, a 40% gain in just a couple of gains is very nice. This is another example where you could take a nice profit. These trades worked out quite well, and short squeezes can be a great way to make money. Investors can't be too greedy though, because when the squeeze stops, these names can retreat quickly.

    Now if you missed out on these articles, you probably are looking forward to my next short squeeze candidate. I will continue to detail these names over time. The best way to get these articles is to become a real-time follower, which gives you access to my articles a lot sooner than those who don't follow me in real time. As always, don't forget to comment on my articles, because the discussion that follows the article can be just as great as the article itself. I wouldn't be here today if it wasn't for the nearly 4,400 followers I have on Seeking Alpha and the large number of you who read my stuff.

    Stocks: SCTY, DDD
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