Seeking Alpha

Stockerblog's  Instablog

Send Message
The author of Stockerblog worked for over 20 years in the financial services industry as a stockbroker, investment advisor, Vice President of a San Francisco money management firm, mutual fund wholesaler, and market maker on the Pacific Stock Exchange. He has written numerous articles for the... More
My blog:
My book:
Investing in Brazil Stocks: Get Rich from the South American Giant
  • Stock Trader's Short Squeeze Opportunities In Tech Stocks 0 comments
    Jan 15, 2013 3:43 PM | about stocks: CALL, CARB, EBIXQ, OPEN, SKUL, UBNT

    A short squeeze takes place when an excessive amount of short sellers have shorted a stock, the stock comes out with good news, and the price of the stock spikes by an excessive amount, because all the short sellers have to scramble to cover their positions by buying in their shares, often due to the fact that they are getting margin calls.

    Potential short squeeze plays have several metrics for comparison purposes. One of the most popular metrics is the Short Interest Ratio, also known as the Days to Cover. What this measures is the number of days it would take the short sellers to cover their positions based on the average daily trading volume. The longer it would take to cover, the higher the ratio. Another analysis is the shares short as a percentage of float. The higher the percentage, the greater the chance that an upside shock would drive up the price.

    The technology sector has many short squeeze plays to choose from. Here are some examples. Shown is the name of the company and the short interest ratio. in other words the number of days it would take the short sellers to cover their positions based on recent volume.

    Carbonite (NASDAQ:CARB) 34.5

    Ebix (NASDAQ:EBIX) 30.4

    Opentable (NASDAQ:OPEN) 19.8

    Skullcandy (NASDAQ:SKUL) 15.4

    Ubiquiti Networks (NASDAQ:UBNT) 14.5

    Magicjack Vocaltec (NASDAQ:CALL) 10.3

    GT Advanced Tech (GTAT) 8.2

    The above are worth checking for the possibility of any positive news as potential trades.

    If you like interesting stock lists like this, check out the many free stock lists at

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

    Themes: short squeeze Stocks: CALL, CARB, EBIXQ, OPEN, SKUL, UBNT
Back To Stockerblog's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.