5 More Penny Stocks To Watch With High Short Interest
There are plenty of trends to follow in the stock market, especially when it comes to penny stocks. We’ve seen industry themes like DeFi, NFTs, and digital currency grow in popularity this quarter.
We’ve also seen broader trends in things like tech, energy, and materials gain the focus of retail traders. However, a more constant and higher volatility trade idea in 2021 is centered around short squeezes. Think back to the beginning of the year and companies like AMC Entertainment, GameStop, and many others set the tone for this trend’s staying power.
Now, heading into the end of the year, many remain focused on finding the next round of short squeeze stocks to buy. This article will look at a handful of names that have higher levels of short interest. From there, you can decide if they’re suitable for your watch list right now. This is a continuation of the first 5 penny stocks with high short interest. To see those, check out our article Penny Stocks To Buy For A Short Squeeze? 5 To Watch Now.
Short Squeeze Penny Stocks To Watch
- NuZee Inc. (NASDAQ: NUZE)
- Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI)
- Invacare Corp. (NYSE: IVC)
- Bluejay Diagnostics Inc. (NASDAQ: BJDX)
- Bit Brother Ltd. (NASDAQ: BTB)
NuZee Inc. (NASDAQ: NUZE)
A few weeks ago, we started discussing NuZee Inc. on our list of “cheap stocks to watch” during the fourth quarter. While it isn’t part of the hottest of industries in the stock market today, it has garnered some individual interest thanks to specific corporate developments this quarter.
Nuzee is a co-packing company for single-serve coffee and produces bags for Cuvée Coffee. Interestingly enough, Cuvée announced an expansion deal into over 3,000 Walmart stores nationwide in November. This helped act as a catalyst for a more significant move over the last month, with NUZE stock rising from roughly $2 to highs of over $7. Following some profit-taking at the end of November, the penny stock has made a more substantial rebound this month.
With a short float percentage of around 11.20%, according to Fintel, NUZE isn’t a stock with the highest short position. However, similar to a few other names on this list, since it has a relatively lower float, that could also play a part in volatile swings that’ve been seen recently.
Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI)
Shares of Spectrum Pharmaceuticals continued higher during the second half of this week. We’ve followed several developments with this biotech company concerning its pipeline of treatment candidates. Specifically, Spectrum has worked on advancing its poziotinib for treating locally advanced or metastatic non-small cell lung cancer. The company’s other platform, ROLONTIS, is in development and heading down the path for submitting a Biologics License Application for patients with non-myeloid malignancies.
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The recent uptick in excitement stems from news that Spectrum officially submitted its New Drug Application for poziotinib. This week, Spectrum announced that the new NDA submission was based on its favorable results from Cohort 2 of its ZENITH20 trial.
“The NDA submission for poziotinib marks an important step in achieving a first treatment for patients with HER2 exon 20 insertion mutations in lung cancer.”
Joe Turgeon, President and CEO of Spectrum Pharmaceuticals
While we wait for more details on the timing of any potential submission approval, some traders are also looking at additional aspects of SPPI stock. In particular, the short interest, which, as of today, according to Fintel, sits around 11.52%.
Invacare Corp. (NYSE: IVC)
Invacare is another one of the penny stocks that has come under pressure this year. Believe it or not, the penny stock was trading above $6 for most of this year. Its initial cracks began showing in September following its Q3 business update. In particular, the company cut guidance. Obviously, as a company that manufactures and distributes medical devices, the pandemic has wreaked havoc on supply chains. Invacare was not immune to this, which sparked the revision in guidance. Throw in a few price target cuts from analysts and a warning letter from the FDA earlier this month, and you’ve got an interesting situation.
Regarding the warning letter, the FDA warned against procedures that involved complaint handling, corrective and preventive action, and medical device reporting associated with oxygen concentrators. In a filing from Invacare, the company said it plans to respond in a timely fashion and work to address these concerns.
So, where does this leave IVC stock right now? If you look at the stock’s chart, you’ll see that the last few sessions have been bullish. Shares have climbed from under $2.20 to over $2.80 on October 9. Meanwhile, Fintel data shows that IVC’s short float percentage sits around 28.7% right now.
Bluejay Diagnostics Inc. (NASDAQ: BJDX)
Another medical device company on this list of penny stocks is Bluejay Diagnostics. Its Symphony System is designed as a more cost-effective near-patient platform for triage, disease progression monitoring, and diagnosis in hospitals and long-term acute care facilities. Symphony is designed to provide results in less than 30 minutes to help provide better and earlier triage or treatment decisions. Currently, the platform is for IL-6 for Sepsis Triage.
Since its IPO, the penny stock has struggled to reclaim its November high of $6.25. However, that hasn’t discounted that BJDX stock has been more active during the last few sessions. There haven’t been any headlines to pair with the move. However, there has been some attention on the current short position on BJDX.
According to Fintel’s data, the short float percentage sits around 11% (10.97) as of this article. While this isn’t as large as some other short figures, the total outstanding share count for BJDX stock is less than 20 million shares. That could suggest that BJDX is also one of the low float penny stocks to watch.
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Bit Brother Ltd. (NASDAQ: BTB)
Like a few of the others on this list of penny stocks, Bit Brother came under pressure over the last few weeks. It’s important to mention this because there’s a reason why traders short stocks in the first place; they want to bet against them and take advantage of any downside should they be correct in their trade idea. In this case, BTB stock has dropped from highs of $3 in November to lows of $0.51 this week.
Part of this drop was credited to the company’s $24.3 million financing round. Why would raising money be a bad thing in the eyes of investors? Based on the price that Bit Brother issued the new shares at ($0.875), this was a steep discount to the market price when the details came to light. As a “bigger picture” view from the market, BTB has come into the fold of crypto stocks. Though there haven’t been many headlines from the company, it has made mention of involvement within this arena.
Earlier this year, Bit Brother announced an LOI to acquire the controlling interest of Angelo’s Pizza. The company mentioned expanding its reach into international markets with a cryptocurrency angle via Bitcoin payment methods. Besides interest around crypto, BTB stock has been on a list of penny stocks to watch with higher short interest. According to Fintel data, the short float percentage currently sits around 12.5%.
Short Squeeze Penny Stocks
It’s important to remember that penny stocks with higher short interest have it for a reason. It usually involves a big bet against the company itself. Regardless, when these stocks “squeeze,” the volatility in the market is like none other. Just look at AMC as an example. Not all penny stocks with high short interest follow this trend. However, it doesn’t hurt to know both the fundamental and technical aspects of certain stocks to decide if or how you plan to trade them.
10 Short Squeeze Penny Stocks To Watch
This is a continuation of the first 5 penny stocks with high short interest. To see those, check out our article Penny Stocks To Buy For A Short Squeeze? 5 To Watch Now. Here’s the full list as well:
- PetVivo Holdings (NASDAQ: PETV)
- Petros Pharmaceuticals (NASDAQ: PTPI)
- Opko Health (NASDAQ: OPK)
- Ring Energy (NYSE: REI)
- Beyondspring Inc. (NASDAQ: BYSI)
- NuZee Inc. (NASDAQ: NUZE)
- Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI)
- Invacare Corp. (NYSE: IVC)
- Bluejay Diagnostics Inc. (NASDAQ: BJDX)
- Bit Brother Ltd. (NASDAQ: BTB)
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