SPRT Stock Has Become The Cornerstone For Short Squeeze Penny Stock Breakouts This Quarter
When penny stocks break out thousands of percentage points, traders take notice. This quarter, one little-known company, Support.com (NASDAQ:SPRT), began catching traction. While the company’s main model was support help for at-home workers, merger news quickly changed the narrative. As discussed earlier this week, SPRT stock started taking off after announcing plans to join forces with Greenidge Generation Holdings.
When the initial details were announced, Greenidge said it anticipates the deal will make it the first publicly traded bitcoin mining company with a wholly-owned power plant. With the special meeting of shareholders set for September 10th, it’s clear that the market is paying close attention. But there are other factors at play that’ve helped spark the massive rally in SPRT stock.
One of those factors was a short-squeeze. What started as attention on a bitcoin mining stock at $3.95 on July 1st has turned into the technical breakout of a stock to highs of $55.67 premarket on August 27th. For those keeping score at home, that’s a move of 1,309.37% since the start of Q3.
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Short Squeeze Penny Stocks To Watch
There are some things to think about when looking for short-squeeze stocks. First and foremost, what is the roughly estimated short position? Furthermore, what is the public float of a heavily shorted stock? If you’re unfamiliar with the term “float,” this refers to the number of shares freely trading in the retail market. It is either less than or equal to the Outstanding Share count but never greater than.
So if float information isn’t available, a low “O/S” could be another metric to get a gauge with when it comes to public float. In either case, today, we’re going to look at penny stocks with high short interest. Will they ultimately squeeze? A lot of that will have to do with the market itself, but it doesn’t hurt to have a few names on the watch list in the meantime.
- Meta Materials (NASDAQ:MMAT)
- Vinco Ventures Inc. (NASDAQ:BBIG)
- Clovis Oncology (NASDAQ:CLVS)
- Kala Pharmaceuticals (NASDAQ:KALA)
Meta Materials (NASDAQ:MMAT)
First on this list of potential short-squeeze penny stocks is Meta Materials. For some of you who’ve read our content, this was a company better known as Torchlight Energy before effecting a merger with Meta Materials. As a former oil and gas company, the Meta deal flipped the script, turning the company into one focused more on green energy. This month Meta reported its first earnings post-merger, and the results turned some heads, to say the least.
The company recorded 197% revenue growth in the second quarter as it continues seeking new contracts. This comes as Meta Materials works to button up yet another acquisition. This one is for Nanotech Security Corp., valued at just under C$91 million. The deal is expected to expand and speed up Meta’s commercialization strategy. In particular, it brings Nanotech’s electron beam lithography equipment anticipated to decrease production costs noticeably. “Nanotech also adds complementary skillsets which can support META’s markets, accelerating our commercialization plans in verticals such as solar energy, 5G and other antennas, battery and fuel cells, and carbon capture,” said George Palikaras, META’s President and CEO.
As it relates to MMAT stock short interest, outlets are showing a short float as of today’s date above 40%. However, it does make sense that some have taken bearish bets on the company considering all of the cash laid out for its current and pending acquisitions. Needless to say, it has been one of the penny stocks to watch this week.
Vinco Ventures Inc. (NASDAQ:BBIG)
Shares of BBIG stock have remained on the radar of retail traders for the last few months. As we previously reported, investors anxiously awaited updates surrounding the acquisition of Lomotif Private Ltd. by Vinco and its subsidiary ZASH Global Media and Entertainment. The Lomotif acquisition’s importance was that it’s a Singapore-based video-sharing social networking platform becoming a rival to TikTok and Kuaishou. Fast-forward a bit, and Vinco is now experiencing surging trading action and gained appeal from the Reddit crowd.
Lomotif has achieved a record number of Monthly Active Users (MAUs) with over 30 million MAUs, according to Data Analysis Firm Sensor Tower. Furthermore, Vinco recently launched recording Artist Tory Lanez’s album “When It’s Dark” on the E-NFT.com platform. “When It’s Dark” is the first album to go platinum on the blockchain with over 1,000,000 units sold.
As far as BBIG stock as a “short squeeze stock to watch,” let’s look at some numbers. According to some outlets reporting short interest, the short float percentage is north of 50%, according to some outlets like FinViz. Given the state of the market and that BBIG has just over 41 million shares outstanding, it could be an interesting thing to track as traders hunt for stocks with high short interest this week.
Clovis Oncology (NASDAQ:CLVS)
The biotech sector may also host some of the other heavily shorted stocks. Phase trial data, scientific reports, and the like all play a role in directional momentum. In this case, Clovis has felt some pressure over the last few quarters. Clinical data on its FAP-2286 platform, along with missed earings, haven’t helped the cause. Then you’ve got news of large, multi-million dollar fundraising initiatives adding more pressure as well. Needless to say, it has happened to hopefully advance the company’s pipeline.
Clovis specializes in developing cancer treatments. Its lead candidate Rubraca is an oral treatment being developed in multiple types of tumors. These include ovarian and prostate cancers. It’s approved in the US for maintenance treatment in adults with recurrent epithelial, ovarian, fallopian tube, or primary peritoneal cancers.
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As far as CLVS being considered one of the “short squeeze stocks,” outlets show that the penny stock’s short-interest sits around 27%. Of course, it isn’t as high as some of the others on this list. However, anything over 20%, by most accounts, can be considered high.
Kala Pharmaceuticals (NASDAQ:KALA)
Then you’ve got Kala Pharmaceuticals, another biotech penny stock with high short interest. If you look at where that figure sits right now, the short float is sitting right around 20% right now. As you’ll see on the chart, selling has taken KALA stock down from highs of nearly $10 this year to lows this month of just $2.67. Recent trading activity has picked up in the potential “short squeeze stock” this week. Some of the excitement seems to have stemmed from retail interest.
Kala specializes in eye treatments. Its EYSUVIS is quickly playing a leading role for the company. According to the company, this past quarter, it was a preferred prescription for short-term treatment of dry eye disease. Furthermore, Kala explained that its expanding market access with Commercial and Medicare Part D health plans.
Mark Iwicki, Chairman, President, and Chief Executive Officer of Kala Pharmaceuticals, explained, “We are encouraged by the very positive feedback we consistently receive from physicians and patients, who describe EYSUVIS as an effective and comfortable medicine and look forward to building on this foundation as we continue with the EYSUVIS launch. In parallel, we continue to promote INVELTYS and are advancing our pipeline of new chemical entities for front and back of the eye diseases, as we work to build a robust and sustainable portfolio of innovative treatments.”
However, more retail traders are zeroing in on technical trading and share structure today. KALA stock could be on the radar for its unique level of short interest apart from what the company itself has going on right now.
Short Squeeze Stocks To Buy Or Avoid?
Short squeezes can be a thrill for traders. Just look at what happened with SPRT stock in just a few weeks. Even just a few days saw the former penny stock explode several hundred percent. But it’s also important to understand that people don’t just short stocks for fun. They usually see a crack in the armor and want to take advantage of a company’s shortcomings. In this case, there are pros and cons to each of the names on this list. However, understand that this is a high-risk situation, it will be important to understand how to trade volatile stocks.
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Case in point, as this article was written, SPRT dropped from its premarket highs to lows on the day of $30.28. Anyone emotionally charged enough to have bought at the premarket high of $55.67 saw their position plummet over 40% in minutes. So if you’re looking for short-squeeze stocks to buy, make sure you’ve got your laces tight and your trading strategy clearly laid out beforehand.