Penny stocks are highly speculative, high-risk, and have the potential to produce big windfalls if you know some basics. The last two years have been a rollercoaster ride in the stock market. Today is no different, and CPI data is an early catalyst, with Consumer Prices leaping 7% for the year through December.
The last time this figure was at these levels was 1982. But since this figure wasn’t “as bad” as some expected, broader markets pushed higher during premarket trading on Wednesday. This has sparked some interest in potential short-squeeze plays as bullish traders look to play against bearish bets that stocks would fall after CPI figures were revealed. Today we take a closer look at a few penny stocks with high short interest.
Penny Stocks TL;DR 30-Second Summary
- Penny stocks are well-known for their higher risk profiles and potential for above average returns
- Today retail traders may be looking at potential short squeeze penny stocks following the release of CPI data
- Consumer Prices rose 7% for the year in December, the highest since 1982
- Since the figure wasn’t outside of Wall Street expectations, traders seemed to take that as a bullish indication leading to a rise in broad sector ETFs
- Since there were bearish bets ahead of today’s CPI data, some traders are taking this as a high-sign to play the “short squeeze” opportunities that may be present
- Today we look at a few penny stocks with higher short interest
The critical thing to remember is that not all penny stocks with higher short interest end up “squeezing.” However, if you’re looking for short squeeze stocks, the first step is finding the correct data. Today we’ll look at a few that can be bought for less than $5 and higher short float percentages right now. Will there be a squeeze as the market turns bullish following new CPI data?
Short Squeeze Penny Stocks To Buy For Under $5
- Stran & Company (NASDAQ: STRN)
- Senseonics Holdings (NYSE: SENS)
- Vinco Ventures Inc. (NASDAQ: BBIG)
1. Stran & Company (NASDAQ: STRN)
Like some of the others on this list of penny stocks, Stran & Co has come under pressure recently. But new developments have come to light that may have helped bring more momentum back to the market. In this case, Strand & Company is a marketing solutions provider that dropped heavily earlier in the year. But a new contract could have built back some of the bullish sentiment that was lost.
Read: Check These 3 Penny Stocks Out For Your Morning Watchlist
In particular, the company announced a multi-year contract with “a large nationally recognized healthcare company.” Stran plans on providing incentive products and literature for driving consumer health behaviors. In response, Andy Shape, President and CEO of Stran, commented, “We believe the healthcare market represents a significant, yet largely untapped, opportunity to utilize promotional products to help drive positive and healthy consumer behaviors.”
Is STRN A Short Squeeze Stock?
In looking at short float data from Fintel.IO, the short float percentage on STRN stock sits around 10.8% right now. While this may be on the lower end of the spectrum, it seems to be something that at least a few retail traders are making a note of in the stock market today.
2. Senseonics Holdings (NYSE: SENS)
The last month has seen Senseonics shares trading in a relatively consistent range between $2.60 and $3 as the market continues digesting the latest string of headlines. The company reported mixed earnings in November, which sent the stock tumbling. However, this week Senseonics reiterated its 2021 guidance and said that it expects fiscal ’21 global net revenue to be in the middle of that guidance range of $12 million to $15 million. In addition, the market has perked up this week as it awaits a potential approval from the FDA.
This relates to the company’s glucose monitor technology, Eversense. “We understand that the FDA is at full capacity managing the backlog of COVID-19 related filings creating longer than expected review timelines. We are confident a decision regarding approval of the 180-day system will be made in the coming weeks as the FDA continues to clear out the backlog,” said Tim Goodnow, Ph.D., President and Chief Executive Officer of Senseonics.
Senseonics’ Eversense and Eversense XL have tiny sensors inserted completely under patients’ skin. The sensors communicate with a smart transmitter worn over the sensor. Then, every 5 minutes, data is sent to a mobile app for a patient to record. As the market awaits the FDA’s decision, speculation has played a role, and SENS stock has responded in kind.
Is SENS a Short Squeeze Stock?
According to Fintel’s data, the current percentage sits around 23.6% right now. Thanks to pending FDA decisions, SENS stock could be one to watch in January based on this recent speculative bet. But remember that nothing is confirmed, so if the FDA decision isn’t in favor of the company, things could be much different in the market.
3. Vinco Ventures Inc. (NASDAQ: BBIG)
Another one of the penny stocks that’s gotten beaten up a bit recently is Vinco Ventures. Thanks to several significant catalysts, it was a big win earlier this year. These included a TikTok app competitor app (Lomotif), a cryptocurrency spin-off, bitcoin mining equipment, and other operating segments, including entertainment production, via the TV series, Preach & feature film, Camp Hideout. These developments culminated in the market via a move from under $2 to over $12.
At the same time, much of this progress was overshadowed by a big earnings miss late last year. For instance, EPS for Q3 came in at a loss of $7.59, which was down from a loss of $0.30 the previous year. Sales also declined, year-over-year. But with plenty of irons on the fire and specific initiatives (like the entertainment production) to come to fruition in the first half of the year, BBIG stock remains on watch for some traders.
Is BBIG A Short Squeeze Stock?
Should you watch BBIG stock for a short squeeze? Like most things, it all depends. But as a starting point, Fintel shows a short float percentage of roughly 22.5% right now.
Are Penny Stocks Worth The Risk?
If you’re looking for penny stocks to buy, risk comes with the territory. The way you handle the risk sets profitable traders apart from the rest. When it comes to a short squeeze, things can move quickly. So quickly that if you aren’t ready to act quickly, you could miss opportunities on both the buy and sell side of the trade. If you’re new to penny stocks, take a look at some of these articles to get your trader education up to speed:
- Former Hedge Fund Trader Teachs How To Trade Like Wall Street Pros
- Penny Stocks Buying Guide For 2022, 3 Tips and Tricks
- Penny Stocks & 5 Stats To Know If You’re Trading Or Investing
- Trading Penny Stocks? 7 Things to Know For Beginners
- Penny Stocks Definition & 3 Trading Strategies To Master In 2022
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