We ran a poll on the Penny Stocks twitter asking what some of the top trends are for traders. One of the most popular happened to be short squeeze penny stocks. I’m sure that if you’ve participated in the stock market this year, you know what they are. Originally, companies like GameStop (NYSE: GME) and other meme stocks made “the short squeeze” a prominent focus. But for those trading stocks under $5, this trend is all too familiar, and today we look at some of the top penny stocks to watch with higher short interest.
Penny Stocks TL;DR Summary
- Penny stocks are volatile enough but short squeezes add to the action
- During a short squeeze, stock prices can experience explosive moves
- If you’re trading stocks and looking for a squeeze, the first step in finding names for your list is looking at short interest
- Today we look at some of the top penny stocks that fit this criteria
As far as trading stocks with high short interest, be ready for volatility. There’s no denying that this market phenomenon can trigger substantial price spikes. However, they can also lead to significant drops as well. There’s a reason why traders are short a stock, and it usually doesn’t have much to do with how successful the companies are. Regardless, you’re here to make money with penny stocks, so this list could give you some extra insight while you research.
Short Squeeze Penny Stocks
- Stran & Co Inc. (NASDAQ: STRN)
- SmileDirectClub Inc. (NASDAQ: SDC)
- FuelCell Energy Inc. (NASDAQ: FCEL)
- Creative Medical Technology Holding Co (NASDAQ: CELZ)
Short Squeeze Penny Stocks To Watch 1. Stran & Co Inc. (NASDAQ: STRN)
Stran & Co remains on our list of penny stocks with higher short interest. The company’s shares have been under pressure during the last few sessions while broader markets pulled back. The company’s focus remains on building its marketing business, and new deals have already started rolling in this month.
Recent STRN Stock News
This month Stran announced a new multi-year contract with “a large national healthcare company” in providing incentive products to drive consumer health behaviors of pregnant women and those suffering from hypertension. CEO Andy Shape expects this deal to drive “significant” annual revenue for the company along with the potential for expansion.
Is STRN A Short Squeeze Stock?
According to data from Fintel.IO, the short float percentage on STRN stock sits around 10.3%. It’s also much higher than it was just one month ago.
2. SmileDirectClub Inc. (NASDAQ: SDC)
SmileDirectClub has been under constant pressure for the last few months. Ever since missing its earnings, the oral care company has been unable to recover. Not only did it miss on earnings per share, but it also came up very short of sales expectations. So what has changed that might bring back some bullishness to SDC stock?
Recent SDC Stock News
A new partnership deal didn’t hurt this week. SmileDirect announced the creation of a new “Confidence Council,” which is partnered with company Ambassadors to bring awareness to the company’s products.
“When selecting partners for this initiative, it was clear that Jonathan, Tunde, and Arielle all deeply believe in the power of confidence and positivity to uplift themselves and their communities,” said John Sheldon, Chief Marketing Officer at SmileDirectClub.
Is SDC A Short Squeeze Stock?
As of this article, the short float percentage for SDC stock sits around 28%. Given a surge of momentum late in the week this week, it could be one of the penny stocks to watch right now.
Short Squeeze Penny Stocks To Watch 3. FuelCell Energy Inc. (NASDAQ: FCEL)
If you’ve traded penny stocks for a while, you may remember FuelCell as one of the top stocks of 2020 & 2021. It defined the reason why penny stocks can be worth the risk. The hydrogen fuel cell company’s stock rallied from $1 in 2020 to highs of nearly $30 in early 2021. Since then, FCEL stock has also demonstrated why penny stocks are very risky. Share prices have slowly dipped into the sub-$5 range to start 2022. So why is FCEL stock on the list?
Recent FCEL Stock News
Despite the recent shortcomings in the market, FuelCell continues advancing its operations. Alternative energy stocks are also gaining attention, so recent news from FuelCell may have attracted some interest. The company announced a significant development earlier this week. It completed site construction and began conditional commercial operation of its 7.4-megawatt SureSource fuel cell project in New York. According to FuelCell, it will deliver to the grid “24/7 power that is enough to power approximately 7,500 homes from a footprint slightly larger than a couple of tennis courts.”
Is FCEL A Short Squeeze Stock?
The latest Fintel data shows an uptick in short interest over the last month. Currently, FCEL stock has a short float percentage of roughly 19%.
4. Creative Medical Technology Holding Co (NASDAQ: CELZ)
Creative Medical is a repeat name on the list of penny stocks with high short interest. Since uplisting to the Nasdaq, it’s also been one of the top companies to watch over the last few months. In November, the company made the “big move” from the OTC to NASDAQ, and shares have steadily risen since. Not much news has come from the company lately, but that doesn’t mean traders aren’t hunting for its next step, and I’ll explain.
Recent CELZ Stock News
Creative released data last quarter on its ImmCelz platform. It demonstrated the treatment’s ability to “reprogram” immune cells and suggested “the ability of ImmCelz™ to achieve superior results in a manner which is amenable to safe, scalable, and rapid clinical translation,” according to Dr. Camillo Ricordi, member of the Company’s Scientific Advisory Board. What could be necessary right now is a pending IND. Currently, the company awaits a response from the FDA after it submitted an Investigational New Drug application to treat stroke victims.
Is CELZ A Short Squeeze Stock?
While it isn’t the highest on the list, CELZ’s short float percentage is around 6.5% right now. Given a lower level of days to cover and a higher borrow fee rate, according to Fintel, it has become one of the penny stocks to watch right now.
Are Penny Stocks Safe?
Be prepared for volatility if you’re looking to buy penny stocks with higher short interest. Not all stocks like this will “squeeze,” but the moves can be violent if they do. For this reason, learning how to trade, in the first place, is key, and to help, here are a few articles to check out:
- Former Hedge Fund Trader Teachs How To Trade Like Wall Street Pros
- How to Buy Good Penny Stocks In 2022: Tips & Tricks For New Traders
- 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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