Just_Super
S3 Partners issued a new U.S. short interest recap on Wednesday in which it broke down what stocks may have some some short squeeze potential. S3’s Ihor Dusaniwsky looked at stock borrow rates to see how crowded a shorted stock is relative to the number of shares there are left to borrow to put on new short positions. Dusaniwsky noted that the higher the stock borrow utilization and stock borrow rates, the more expensive it is to short a stock. That could lead to some short covering if sentiment shifts.
“Short sellers need strong short-side conviction to short to keep a short position open when their Alpha is getting eaten away daily, even weekends.”
The ten stocks with the highest stock borrow rates that have short interest outstanding of over $25 million are VinFast Auto (NASDAQ:VFS), Beyond Meat (NASDAQ:BYND), B. Riley Financial (RILY), Freedom Holding (FRHC), Cassava Sciences (SAVA), Sirius XM Holdings (SIRI), Immunitybio (NASDAQ:IBRX), Global Partners (GLP), Soleno Therapeutics (SLNO), and Hut 8 Corp. (HUT).
Of those ten crowded short stocks, IBRX is the only one with a Seeking Alpha Quant Rating of Buy, while Beyond Meat (BYND) is the only name with a consensus Sell rating on Wall Street. In terms of momentum, Soleno Therapeutics (SLNO) trades wih the biggest spread to its 200-day moving average and B. Riley Financial (RILY) trades with the biggest discount to the 200-day moving average.
