This $13 Stock: The Next Major Short Squeeze?

When it comes to identifying short squeeze candidates, one of the most important statistics to look for is “days to cover.”

Days to cover measures the expected number of days to close out a company’s outstanding shares that have been sold short.

In the most simplistic explanation possible, a high days to cover measurement can signal a potential short squeeze.

To arrive at the statistic, divide the number of shares that are currently shorted by the average daily trading volume – which results in an approximate time, expressed in days, that it would take for every short seller to entirely close out their position.

Here’s a list of the largest “days to cover” readings – meaning these are the biggest short squeeze candidates in all of Wall Street.

  • PMV Pharmaceuticals (PMVP): 15 days to cover
  • Tattooed Chef (TTCF): 17 days to cover
  • Erasca (ERAS): 17 days to cover
  • Sana Biotechnology (SANA): 20 days to cover
  • MicroVision (MVIS): 23 days to cover
  • Big 5 Sporting Goods (BGFV): 22 days to cover
  • Stoke Therapeutics (STOK): 24 days to cover

As you can see, Big 5 Sporting Goods (BGFV) is on this list – with a whopping 22 days to cover their entire short position.

In other words…

Given their current short position – and average daily volume – it would take nearly a full calendar month to clear out every single short on BGFV.

Chart: Big 5 Sporting Goods
Why is this important?

Action Plan: BGFV reports earnings after the close of trading tomorrow. If the earnings are strong, the stock could pop – which could ignite one of the biggest short squeeze situations in all of Wall Street. To see how we’re playing short squeeze situations like this, you’re invited to join our trading community inside The War Room. Right now we’re guaranteeing members will receive 252 winning trades in their first 12 months of membership.

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