9 Short Squeeze Stocks That Could Take Off in August

A few more recommendations for stocks for those preferring to ride a bit more on the wild side.  Tomorrow, recommendations with a more conservative bent.  

AUGUST 3, 2023 Invested Advice, rankings and stock market news for investors.

Good morning, investors. Stocks fall after Fitch downgrades the U.S. credit rating as earnings seasons rolls forward. Highlights of today's newsletter include our market insights plus these new articles: 9 Short Squeeze Stocks That Could Take Off in August 7 Best Vanguard Bond Funds to Buy 7 Best Sports Betting Stocks to Buy Vanguard vs. Fidelity: Which Is Better for You? TODAY'S FEATURED STOCK STORY 9 Short Squeeze Stocks That Could Take Off in August Short squeezes have been among the most popular and controversial topics on Wall Street in the past couple of years. In 2021, groups of online stock traders on Reddit made headlines by orchestrating targeted buying campaigns to trigger short squeezes in some of the market's most heavily shorted stocks. A short squeeze is a large, short-term spike in a stock's share price that occurs when a significant number of short sellers are forced to buy shares and exit their positions all at once. Here are nine stocks primed for the next big short squeezes, according to Ortex Analytics: Sirius XM Holdings Inc. (ticker: SIRI). Sirius XM Holdings is a leading provider of satellite and internet radio services, largely to the auto industry. On Aug. 1, Sirius XM reported second-quarter earnings and revenue numbers that beat consensus analyst expectations after a first-quarter miss. The company also guided for just $1.15 billion in 2023 free cash flow, a potential year-over-year decline of about 25%. Sirius XM is on track for its third consecutive year of declining cash flows, and short sellers are taking notice. However, a recovery in the global auto market could be enough to trigger a major short squeeze. Sirius XM's short interest is 29% of its float, or free-trading shares. Quince Therapeutics Inc. (QNCX). Quince Therapeutics is a biotechnology company that acquires, develops and commercializes therapeutics, including its precision bone growth molecule, NOV004. The treatment targets and concentrates at bone fracture sites. Quince shares ripped higher in March when the company received an acquisition offer from Echo Lake Capital at a price of $1.60 per share, but the Quince board rejected the offer in April. Echo Lake raised its offer to $1.80 on July 13. Quince then announced its own planned acquisition of private biotech company EryDel SpA on July 24. Short sellers seem to think Quince shouldn't have rejected the buyout. Ortex estimates 15% of Quince's float is held in short positions. Click here to continue reading.