These 12 Stocks are Ripe for a Short Squeeze

Core Insights - Short interest is a significant technical indicator for contrarian investors, and it is a key component of Sehaeffers' Expectational Analysis® [1][2] - The analysis of short interest helps identify potential stock squeezes, where short sellers may be forced to cover their positions, driving stock prices higher [2][4] Group 1: Short Interest Analysis - The latest analysis by Senior Quantitative Analyst Rocky White focuses on stocks with high short interest, indicating potential for price increases if short sellers capitulate [2][3] - A table compiled by White lists various stocks with their short interest percentages, changes, and average short prices, highlighting significant short interest in the biotechnology sector [4][5] - Biotech stocks are particularly targeted by short sellers due to their volatility and the impact of drug pipeline developments on stock performance [4][6] Group 2: Specific Stock Insights - Insmed Inc (NASDAQ: INSM) has experienced a 9% drop in short interest, with current short interest accounting for 8% of its float, leading to a potential 55% loss for short sellers if they entered at $33.66 [5] - Viking Therapeutics Inc (NASDAQ: VKTX) and TG Therapeutics Inc (NASDAQ: TGTX) also show significant short interest, with 17.1% and 23.4% of their floats sold short, respectively, and potential losses of 55% and 47% for short sellers [5] - The SPDR S&P Biotech ETF (XBI) has seen an increase in short interest from 56% in May 2023 to 64.7% in September 2024, indicating a growing bearish sentiment in the biotech sector [6] Group 3: Future Projections - Projections for 2024 suggest significant potential gains for INSM, VKTX, and TGTX, with expected increases of 141%, 215%, and 30%, respectively, if short sellers begin to cover their positions [7]