Penny Stocks Ready To Squeeze?
If you’re unfamiliar with the definition of penny stocks, we’re talking about cheap shares typically trading for less than $5. Thanks to the 2022 stock market crash and the general stock market game being played this year, plenty of larger companies are finding themselves trading at penny stock levels.
While this might be bad for longs from earlier in the year, it has created a unique landscape for active traders hunting for cheap stocks to trade. It also presented a situation where bearish bets through short selling have opened opportunities for mega squeeze action. We’re not just talking about AMC Entertainment’s (NYSE: AMC) or GameStop’s (NYSE: GME) historic moves. We’re talking about current breakouts from heavily shorted penny stocks.
This article will look at a handful of penny stocks with higher short interest. Something to keep in mind as you do your research is that short-interest stocks have high short-interest for a reason. Most of the time isn’t because traders are optimistic about the companies. Nevertheless, the technical set-up of a short squeeze can present a scenario where short-term bullishness can overtake the longer-term bear market trend.
Short Squeeze Penny Stocks Under $5
- Getty Images (NYSE: GETY)
- F45 Training (NYSE: FXLV)
- PLBY Group Inc. (NASDAQ: PLBY)
- View Inc. (NASDAQ: VIEW)
- Appharvest (NASDAQ: APPH)
Short Squeeze Penny Stocks To Buy [or avoi] 1. Getty Images (NYSE: GETY)
IPOs haven’t performed the best in the long term this year. While you’ve seen plenty of new issuers explode on day one, most have slid lower over the weeks to follow. Getty Images is one of these companies, and over the last few weeks, it has steadied around the $4.50-$.70 level.
The visual content creation platform recently announced a partnership with BRIA to “transform visual content through responsible AI.”
“When used responsibly, Generative AI can democratize creativity by reducing the technical and budget entry barriers and increase visual representation in marketing,” said Ravit Dotan, Ph.D. and AI Ethics Expert at BRIA. “BRIA is committed to responsible AI, with a focus on respecting copyrights, bias mitigation, and exploring this unmapped territory with our partners and colleagues.”
According to the companies, the goal is to develop tools utilizing AI to give more control to creators. With earnings season in full swing, GETY stock may also be in focus, thanks to its upcoming earnings report on November 14th.
[Read More] Top Strategies for Making Money With Penny StocksIs GETY a short squeeze stock to watch? According to data from Fintel.IO, the current short float percentage on GETY stock is around 71%.
2. F45 Training (NYSE: FXLV)
The fitness company most notable for its relationship with Mark Wahlberg is another one of the newer IPOs to pull back to penny stock levels. Despite it slipping, the last few months have been much more robust, in general. FXLV stock has recently bounced from under $1 to over $3.
Part of the recent excitement was due to an unsolicited acquisition offer from Kennedy Lewis Investment Management. If the name sounds familiar, it may be based on some of our previous articles on FXLV stock. Kennedy Lewis has been a frequent insider buying shares of the penny stock. In its most recently filed amended 13D, the firm reported a position of more than 14 million shares. The buyout offer was an offer at $4 per share in cash. No further updates have come up about this potential offer. But it has helped spike interest in the company.
Is FXLV a short-squeeze stock? In looking at Fintel data, the current short float percentage on FXLV stock sits shy of 30%.
3. PLBY Group Inc. (NASDAQ: PLBY)
Like F45, PLBY Group has been one of the more frequently discussed “name-brand” stocks to watch after flushing out earlier this year. The multi-media company associated with names like Cardi B, the Playboy brand, and plenty of other tables was one of the many SPACs (Special Purpose Acquisition Company) that imploded shortly after merging with a blank check company.
Regardless of the overall trend in the stock market this year, the last few days have seen PLBY stock climb higher. Other than upcoming earnings next week, not much has been reported by the company. However, a filing from Builders Union LLP right before October began had brought some bullish interest to the stock. Builders reported a 5.15% stake in PLBY.
[Read More] 4 Penny Stocks To Buy: Insider Picks For OctoberIs PLBY a short-squeeze penny stock? With a 22% short float percentage reported on Fintel and a roughly 21% percentage according to TDAmeritrade, PLBY stock has joined the watch list this week.
4. View Inc. (NASDAQ: VIEW)
Smart-building technology company View Inc. has done well at maintaining trading levels above its 52-week lows since the summer. VIEW stock caught attention in June after unveiling its Smart Building Cloud platform. Commenting on the development was Rahul Bammi, Chief Business Officer at View. He explained, “Customers are using our platform to harness data already generated by their buildings to immediately enhance the occupant experience, reduce energy consumption, and gain operational efficiencies.”
This week View reported a $200 million convertible senior note financing. Funds are expected to be directed to enhance View’s growth prospects. Its smart windows were recently included in the Investment Tax Credit in the Inflation Reduction Act of 2022, which has helped build consumer interest in the company’s product line.
Is VIEW a short-squeeze penny stock? While short float data from TDAmeritrade is the VIEW short under 10%, Fintel data shows the figure much higher at 23.38%.
5. Appharvest (NASDAQ: APPH)
Appharvest, like all penny stocks on this list, has been under pressure for an extended period. But the short-term trends have been bullish since APPH stock hit 52-week lows last week. Agriculture stocks have certainly come into focus thanks to geopolitical tensions with Russia. Appharvest provides AgTech services to develop indoor farms using robotics and AI to produce sustainable food.
It operates a large farm producing tomatoes and continues developing additional farms to grow different crops. Vine crops, salad greens, and berries are planned, with more farms under construction, expected to be operational before next year. In line with that plan, AppHarvest recently announced the opening of a 15-acre indoor salad greens farm. The news details a $30 million financing deal with its marketing partner Mastronardi Produce.
[Read More] 4 Top Penny Stocks To Watch This Week“AppHarvest is deepening its relationship with Mastronardi Produce under the ‘Queen of Greens®’ packaged salad brand. Securing non-dilutive sources of capital to fund our growth has been the team’s priority, and we expect this financing through Mastronardi to improve cash flow as we continue to scale operations,” said AppHarvest Founder & CEO Jonathan Webb.
Is APPH a short-squeeze penny stock to watch? Fintel and TDAmeritrade have a short float percentage on APPH stock, sitting around 21%.
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