Thanks to the rise of meme stocks like AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME), retail traders are doing more than looking for buy and hold investments. Searching for stocks with high short interest has become commonplace, and for a good reason. In contrast, there’s no guarantee of a massive, AMC-style breakout, the first step in finding short squeezes into find short interest stocks. Today we look at a handful of cheap stocks under $5 that have seen short interest increase. Will they become the next big squeeze penny stocks for April?
Short Squeeze Penny Stocks to Watch
- Guardforce AI Ltd. (NASDAQ: GFAI)
- Clovis Oncology Inc. (NASDAQ: CLVS)
- Gevo Inc. (NASDAQ: GEVO)
- Ring Energy (NYSE: REI)
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Keep in mind that short squeeze stocks carry plenty of risks. Due to higher levels of volatility, it’s best to have a clear strategy mapped out. If you can catch a squeeze, however, the potential gains can far outweigh the risk involved, and in that case, you’ve got yourself a winning trade. Will these penny stocks join the list of big squeezes for 2022 next?
Short Squeeze Penny Stocks To Watch: Guardforce AI Ltd. (NASDAQ: GFAI)
Shares of Guardforce AI have been in focus ever since the threat of cyberattacks made headlines. The U.S. government directly stated that companies need to boost their cybersecurity efforts. Shares of GFAI stock have been up significantly since the start of March.
The company specializes in Robotics as a Service (RaaS). Earlier this week, the company reported expansion into Dubai and Australia. Terence Yap, Chairman of Guardforce AI, commented, “Both the Dubai and Australian markets, we expect, will play a very important role in our global RaaS rollout as they foster innovative environments for technology and allow fast-growing companies to flourish. With a presence in these two key markets, we are now operating across three different continents and in nine evolving markets globally.”
What may be a more significant focus right now for retail traders is the short interest in GFAI stock. According to data from Fintel.IO, the short float percentage on Guardforce sits around 38% right now.
Clovis Oncology Inc. (NASDAQ: CLVS)
Shares of Clovis Oncology have been on our list of penny stocks to watch for weeks. The latest headlines from the company prompted a quick spike in trading action this week. Thanks to news of its Rubraca showing improvement in progression-free survival in women with ovarian cancer, CLVS stock surged to new March highs.
Patrick J. Mahaffy, President and CEO of Clovis Oncology, explained, “We believe that the positive results from ATHENA-MONO demonstrate that Rubraca will provide an important new treatment option for women with advanced ovarian cancer in the first-line maintenance setting, and we look forward to submitting these data to the regulatory authorities in the US and Europe during Q2 and Q3 2022, respectively.”
However, that move was fleeting as shares tumbled shortly after the update was released. Heading into the beginning of April, CLVS stock has picked up a bit of momentum, which has also included interest in its current short position. Fintel data now shows the short float percentage sitting at 19.06%.
Short Squeeze Penny Stocks To Watch: Gevo Inc. (NASDAQ: GEVO)
Energy stocks have also become a point of interest since the Russia-Ukraine conflict began making headlines. Everything from oil & gas to alternative energy has been in focus. Gevo Inc. remained one of the top energy penny stocks to watch in March and now could be in April following some recent developments.
Gevo’s model centers around the production of sustainable fuels. Late last month, it signed a deal with Delta Air Lines Inc. (NYSE: DAL) to supply 75 million gallons of sustainable aviation fuel per year for seven years. Accordingly, the company expects the agreement to generate around $2.8 billion of revenue. This news came a day after oneworld Alliance members announced a plan to buy up to 200 million gallons of sustainable aviation fuel per year. The company was also a topic of discussion on CNBC’s “Mad Money Lightning Round” as host Jim Cramer said the company should be “working better here, but it’s losing too much money.”
This might be one of the reasons for traders getting short on GEVO. According to Fintel data, the short float percentage for GEVO stock sits around 20%.
Ring Energy (NYSE: REI)
Sticking with the energy trend, Ring Energy is also in focus. Shares of the penny stock have continued climbing higher throughout the year. It specializes in oil and gas exploration. It also recently reported earnings that beat estimates and demonstrated substantial progress during the end of 2021. Earnings for the quarter broke above $24 million compared to just over $14 million during the same period a year earlier. Estimates pegged the earnings at $7.5 million, which was a significant beat.
CEO Paul D. McKinney explained, “The fourth quarter marks the ninth consecutive quarter of generating free cash flow. We also saw our year-end reserves increase by 2%, more than offsetting our 2021 production.”
REI has been one to watch on the heels of this news and interest in energy penny stocks. As far as short squeeze penny stocks, Fintel data shows the short float percentage sitting at 26.65%.
Penny Stocks: Risk & Reward
Penny stocks can be a great way to make money quickly. But they don’t come without risk. Lately, headline risk has become a critical factor in big moves. With the added layer of higher short interest, short squeeze penny stocks require a bit more attention if they’re something you’re looking to trade. Today’s big question is, will any of these short interest penny stocks become the next big movers in April?