Penny stocks are known for volatility and their prominence of high-risk and high-reward. Then you can factor in other things to up the ante. One of the recent trends taking the attention of traders in the stock market today involves short squeezes. When one happens, it can result in massive spikes in specific stocks to the tune of hundreds of percentage points within a single session. There are a few caveats, however.
First, just as quickly as these moves happen to the upside, they can come crashing down just as fast. It’s important to understand the basics of trading high-volatility stocks before testing these waters. You’ve also got to consider that just because a stock has a high short interest, it doesn’t mean there’s a guaranteed squeeze in the cards.
Short Squeeze Penny Stocks To Watch
- Ring Energy Inc. (NYSE: REI)
- Appharvest Inc. (NASDAQ: APPH)
- Hookipa Pharma Inc. (NASDAQ: HOOK)
- BitNile, Inc. (NYSE: NILE)
- Microvision, Inc. (NASDAQ: MVIS)
Penny Stocks To Buy Now
When looking for short squeeze penny stocks to buy, the first place to begin is identifying stocks with higher short interest. Later in this article, we’ll dive deeper into how penny stocks work for those new to trading low-priced stocks. Below are a handful of penny stocks gaining attention for their higher short interest. Will they be the best penny stocks to buy now, and at that, will they end up squeezing?
Ring Energy Inc. (NYSE: REI)
Energy stocks have been red hot lately, and yes, that includes penny stocks. Thanks to global unrest and supply restrictions due to the Russia-Ukraine conflict, oil, and gas prices have surged. This has boded well for energy companies (including some alternative and even green energy names).
Ring Energy falls into the traditional oil and gas exploration category. It recently provided an operational update, which showed strong growth during 2021. For example, 4th quarter volumes increased 11% over the 3rd quarter to 9,154 barrels of oil equivalent per day. The company also recorded its 9th consecutive quarter of remaining cash flow positive. Looking ahead, Ring has already begun its 2022 drilling program after drilling its first two wells in January.
Is REI A Short Squeeze Stock?
With a backdrop of strong operating results and higher energy prices, REI stock has been on the watch list for some traders. It has also turned heads for the current short position too. According to Fintel, REI’s short float percentage sits at 22.75% right now.
Appharvest Inc. (NASDAQ: APPH)
Tech stocks have gotten hit hard to start the year, but that doesn’t mean there isn’t a fighting chance. Appharvest is an example of that over the last few sessions, and since last Thursday, the penny stock has bounced back strongly.
What does Appharvest do? The company specializes in agricultural technology and, more specifically, more efficiently growing crops without pesticides or GMOs. Appharvest’s platform has allowed it to gain entry into more than 1,000 top grocery stores and restaurants. In last week’s earnings update, CEO Jonathan Webb highlighted that AppHarvest’s approach had given it the ability to make strides in its first year as a public company.
Looking ahead at its second year, Webb said that he is “laser-focused on the core business, adjusting our strategy to better control costs and further optimize operational performance as we work to quadruple our number of farms and more than double net sales this year to build a resilient business that creates long-term shareholder value.”
Is APPH A Short Squeeze Stock?
According to data from Fintel.IO, APPH stock has a short float percentage of 23.83% right now.
Hookipa Pharma Inc (NASDAQ: HOOK)
Shares of Hookipa have been on our watch list for weeks at this point. It was one of the low float penny stocks to watch in mid-February and has remained a volatile name since then. Its immunotherapeutic development “arenavirus” platform is the current focus, and news of its recent Gilead deal hasn’t hurt excitement in the market.
Hookipa and Gilead announced an amended collaboration and license agreement with Gilead to develop immunotherapies against HIV. The pharma giant obtained licensed rights to Hookipa’s arenaviral platform for HIV and hepatitis B immunotherapy development in 2018.
Is HOOK A Short Squeeze Stock?
In addition to low float, HOOK has become one of the “short squeeze penny stocks” to watch heading into March. Right now, Fintel data shows a short float percentage of 13.02%.
BitNile, Inc. (NYSE: NILE)
Cryptocurrency has also been heating up following the Ukraine invasion. Banking restrictions have shed a brighter light on decentralized finance and access to capital during times of crisis. As discussed earlier this week, even the Ukrainian government is getting behind the movement. The official Ukraine Twitter account tweeted out that it was accepting donations to support the country.
BitNile shares have climbed over the last few sessions thanks to more interest in cryptocurrency stocks. The company has focused efforts on Bitcoin mining and data center operations. In an update on Tuesday, BitNile reported that its mining production is operating at an annualized run rate of 360.99 Bitcoin. This is, of course, based on current market conditions. The company has 2,160 active miners online, with another 297 expected during the second week of this month.
It’s also worth noting that, BitNile entered into a purchase agreement with Bitmain Technologies limited for a total of 20,600 Bitcoin miners previously.
Is NILE A Short Squeeze Stock?
Thanks to the growing interest surrounding cryptocurrency stocks, NILE has come into focus. Is it also one of the short squeeze stocks to watch? According to data from Fintel, the current short float percentage sits at 8.77%.
Microvision, Inc. (NASDAQ: MVIS)
We’ve found a lot of trading trends recently. Some of these trends are pretty unique, especially when you’re talking about penny stocks. Automotive lidar solutions company, MicroVision is one of these “unique” cases. It has remained in the spotlight as a “short squeeze penny stock to watch” for the last few weeks.
Recent earnings results seem to have brought some new interest to the stock. MicroVision missed earnings per share estimates but beat sales expectations for the quarter. There was also a commentary on plans for track testing its high-speed Highway Pilot system in the U.S. and Germany next quarter. However, something to note before that time is what’s coming this month. The company presents at the March Investor Summit Virtual Event on the 9th.
Is MVIS A Short Squeeze Stock?
MVIS stock remains on the list of short squeeze penny stocks to watch right now. According to Fintel data, the current short float percentage is around 23.6%.
Are Short Squeeze Penny Stocks Worth It?
You might wonder if penny stocks are worth it or not and much of that answer comes down to your trading style. It also comes down to specific stocks. Most penny stocks are quite volatile, so it takes a quick hand to trade actively. Throw in things like short squeezes, and “volatility” is amplified.
Can you manage risk? Do you know how to identify strong vs. weak trends? Are you able to decipher news headlines and break down important information? Have you found out how to identify important SEC filing types? How will global headlines affect specific sectors & related stocks? If you’re brand new, here are a few articles that will help you get started on the right foot: