Penny stocks are highly speculative, high-risk and have the potential to generate significant gains if you know some of the basics. The past two years have been a roller coaster ride in the stock market. Today it’s no different, and the CPI data is an early catalyst, with consumer prices jumping 7% in the year through December.
The last time that number was at these levels was 1982. But since that number wasn’t as “bad” as some expected, the broader markets rallied during pre-market trading on Wednesday. This has sparked some interest in potential short pressure games as bullish traders look to play against bearish bets that stocks will fall after the CPI numbers are revealed. Today we take a closer look at a few Feast With very short attention.
Benny Stokes TL; 30-second summary of the doctor
- Penny stocks are known for their high-risk profiles and the potential for above-average returns
- Today’s retailers may be looking for potential short penny stock squeeze After the release of consumer price index data
- Consumer prices rose 7% year on year in December, the highest since 1982
- Since the number was not out of Wall Street expectations, traders seemed to be taking this as a bullish indicator leading to a rally in the broad sector ETFs.
- As there are bearish bets ahead of today’s CPI data, some traders take this as a loud signal to play ‘short squeeze’ opportunities that may exist
- Today we look at a little Few penny stocks with higher short interest
The important thing to remember is that not all cash stocks with high short interest end up with “squeeze”. However, if you are looking for a short squeeze stock, the first step is to find the right data. Today we will be looking at a few things that can be bought for under $5 and higher short float percentages right now. Will there be pressure as the market turns bullish after the new CPI data?
Short squeeze on penny stock to buy under $5
- Page and Company (NASDAQ: STRN)
- Senseonics Holdings (NYSE: SENS)
- Vinco Ventures Inc. (NASDAQ: BBIG)
1. Page and Company (NASDAQ: STRN)
Like some others in this List of penny stocks, Stran & Co. has been under pressure recently. But new developments have emerged that may have helped put more momentum back into the market. In this case, Strand & Company is a marketing solutions provider that pulled back hard earlier in the year. But a new decade could have brought back some bullish sentiment that was lost.
Read: Check Out These 3 Penny Stocks For Your Morning Watch List
In particular, the company announced a multi-year contract with a “nationally recognized large healthcare company”. Stran plans to provide motivating products and literature to drive consumer health behaviors. In response, Andy Ship, President and CEO of Stran, commented, “We believe the healthcare market presents an important, but largely untapped, opportunity to use promotional products to help drive positive, healthy consumer behaviors.”
Is STRN a short squeeze stock?
Looking at the short float data from Fintel.IO, the percentage of the short float on the STRN stock is around 10.8% at the moment. While this may be on the lower end of the spectrum, it appears to be something that at least a few retail traders are taking note of in the stock market today.
2. Senseonics Holdings (NYSE: SENS)
The past month has seen Senseonics shares trade in a relatively flat range between $2.60 and $3 as the market continues to absorb the latest string of headlines. The company reported mixed earnings in November, sending the stock down. However, this week Senseonics reiterated its 2021 guidance and said it expects global fiscal 21 net revenue to be in the middle of that guidance range of $12 million to $15 million. In addition, the market rebounded this week as it awaits possible approval from the Food and Drug Administration.
This relates to the company’s glucose monitoring technology, Eversense. “We understand that the FDA is fully operational in managing the backlog of files related to COVID-19, creating longer-than-expected timelines for the review. We are confident that it is A decision on approval of the 180-day regime will be made in the coming weeks as the FDA continues to clear the backlog.”
The Eversense and Eversense XL from Senseonics contain tiny sensors that are inserted completely under the patient’s skin. The sensors are connected to a smart transmitter that is worn on top of the sensor. Then, every 5 minutes, the data is sent to a mobile app for the patient to record. As the market awaits the FDA’s decision, speculation played a role, and SENS stock responded in kind.
Is SENS short compression stock?
According to Fintel data, the current ratio is around 23.6% at the moment. Thanks to pending FDA decisions, SENS stock could be one to watch in January based on this latest speculative bet. But remember that nothing has been confirmed, so if the FDA’s decision is not in the company’s favor, things could be a lot different in the market.
3. Vinco Ventures Inc. (NASDAQ: BBIG)
Another one of the smaller stocks that has been taking a beating a bit lately is Vinco Ventures. Thanks to several significant catalysts, it was a big win earlier this year. This included a rival app for TikTok (Lomotif), cryptocurrency display, bitcoin mining equipment, and other sectors of operation, including entertainment production, via TV series, Preach & feature film, Camp Hideout. These developments culminated in the market by going from under $2 to over $12.
At the same time, much of this progress was overshadowed by a major loss late last year. For example, earnings per share for the third quarter came in at a loss of $7.59, which was less than a loss of $0.30 a year earlier. Year-on-year sales also declined. But with plenty of irons and specific initiatives (such as entertainment production) to pay off in the first half of the year, BBIG’s stock is still on the watch for some traders.
Is BBIG a short squeeze stock?
Should you watch the BBIG stock for a short squeeze? Like most things, it all depends. But as a starting point, Fintel is showing a short float rate of around 22.5% at the moment.
Are penny stocks worth the risk?
If you are looking for small stocks to buy, the risk comes with the zone. The way you handle risk sets profitable traders apart from the rest. When it comes to a short press, things can move quickly. So fast that if you are not ready to act fast, you may miss out on opportunities on both the buying and selling sides of the trade. If you are new to the world of small stocks, take a look at some of these articles to make your trader’s education easier:
If you enjoyed this article and are interested in learning how to trade so that you have the best chance of earning consistently, then you need to check out this YouTube channel. Click here now!