Short squeeze penny stocks are the unicorns of the stock market today. They aren’t always in play, but when they are, they can wake up the entire small- and micro-cap stock arena. That’s what has happened over the last few weeks and more actively in the previous few days.
In late June, we discussed a few penny stocks to watch for various reasons. The article, “4 Low Float Penny Stocks To Watch This Week,” talked about ToughBuilt Industries Inc. (NASDAQ: TBLT). Other than the favorable news at the time, TBLT stock was in focus for its newly found low float thanks to a recent reverse split of company shares.
Since then, we’ve followed up on new developments, including the mounting short interest in the penny stock. This week, that came to a head with TBLT stock exploding to highs of $9.33 during Friday’s morning session marking a move of 436% since our update in June. If that wasn’t enough, TBLT stock has also made a significant move in the short term, jumping nearly 90% since yesterday’s opening bell.
When short squeezes trigger, it can present an explosive situation in the stock market. Today is one of the many examples and a reminder to keep your trading strategy in mind. Just as quickly as short squeeze stocks can climb, they can also drop. In light of the very aggressive move that this former penny stock has made, that may be an appropriate thing to mention now.
Short Squeeze Stocks To Watch
Today we look at the sympathy sentiment created thanks to the massive move in TBLT stock and other former penny stocks like Pagaya Technologies Ltd. (NASDAQ: PGY). That stock has managed to move nearly 400% since Tuesday. Now it seems like the hunt is on for the next multi-bagger penny stocks to watch with high short interest. In this article, we discuss 3 penny stocks with higher short interest.
[Read More] 5 Penny Stocks To Buy For Under $5
Hot Penny Stocks To Watch Today
- Brickell Biotech Inc. (NASDAQ: BBI)
- Blue Hat Interactive Entertainment (NASDAQ: BHAT)
- Hour Loop Inc. (NASDAQ: HOUR)
Brickell Biotech Inc. (NASDAQ: BBI)
Brickell Biotech has the highest level of short interest among names on this list of penny stocks. According to data from Fintel.IO, BBI stock’s short float percentage is 164.74%. Other outlets, including TDAmeritrade, put this figure “slightly” lower at “just” 156.2%.
The company’s stock has come under plenty of selling pressure and failed to hold any meaningful bull trend over the last year. However, there have been periods when BBI stock experienced sporadic breakouts. Considering it recently touched new 52-week lows, it might seem fitting for it to have the highest short float percentage right now.
Is there hope, or do shorts win the battle? Earlier this month, Brickell Biotech regained compliance with NASDAQ’s minimum bid price thanks to a reverse split. The 1:45 split also helped lighten the load as far as BBI stock’s float is concerned. Most outlets show this figure at less than 10 million shares. Paired with a massive short float percentage, it makes sense that volatility risk is high in the stock.
From a fundamental stance, one of the focal points with Brickell Biotech is its current Phase 1 study of BBI-02. This is its treatment candidate for restoring immune balance in patients with autoimmune and inflammatory diseases. The company dosed its first patient.= and now has given the market something to look for in terms of interim data.
Blue Hat Interactive Entertainment (NASDAQ: BHAT)
We’ve touched on Blue Hat Interactive over the last month. Similar to ToughBuilt, attention has been on stock market momentum. In addition, some bullishness in the digital asset/cryptocurrency arena hasn’t hurt things either. Blue Hat specializes in augmented reality and interactive entertainment technology. Thanks to cryptocurrency and blockchain technology prompting the growth of metaverse applications, AR/VR and extended reality technology companies have gained some attention.
What helped BHAT stock surge last month was canceling one of its offerings. Ironically, what has helped give it a boost was announcing an offering this month, which it priced at a premium to the market. As we discussed earlier this week, other than the financing news, Blue Hat hasn’t seen many corporate-related catalysts as far as information is concerned.
But the short squeeze trend has started playing a role. That’s because BHAT stock has a short float percentage of just over 40%, according to Fintel.IO data. TDAmeritrade has this figure slightly lower at 39.64%.
Hour Loop Inc. (NASDAQ: HOUR)
Though it isn’t the highest short float stock on this list, Hour Loop has gained the attention of retail traders in the stock market today. That may have been a result of both sympathy sentiment for short squeeze stocks as well as sentiment for online retail technology companies. Hour Loop specializes in eCommerce, operating as a third-party seller on Amazon’s website, Walmart’s website, and its own company site. Product categories span the gamut and include everything from housewares to apparel.
In its first quarter report, Hour Loop announced strong revenue growth of 32.5%, bringing in $12.4 million. Its net loss was also slightly lower as the company navigated supply chain pressures. The company expects $81-$90 million in total sales this year. Sam Lai, CEO of Hour Loop, explained in the company’s Q1 update, “We further demonstrated our ability to execute on our strategy and drive growth as planned.”
What is the HOUR stock short float percentage? According to Fintel & TDAmeritrade data, this figure sits at 24.38%. It isn’t the highest compared to others on this list, but it isn’t a low figure either. It will be interesting to see that, in light of the big move from TBLT stock and PGY stock today, if any of these names follow suit or continue trading in their current trends.