AMC Entertainment (NYSE: AMC), Clovis Oncology Inc. (NASDAQ: CLVS), and Allied Energy Corporation (OTCMKTS:AGYP)
A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradeable security. For a short squeeze to occur the security must have an unusual degree of short sellers holding positions in it. The short squeeze begins when the price jumps higher unexpectedly. The condition plays out as a significant measure of the short sellers coincidentally decide to cut losses and exit their positions. There are three stocks we think have the potential to be squeezed and turn investor lemons into lemonade.
AMC Entertainment (NYSE:AMC) has been able to outlast Covid-19 and get to where movies are reopening and people can buy theatre popcorn. In 2021 AMC has been able to sell shares at prices significantly higher than they were in 2020. This has allowed the company to survive $1.3 billion in negative free cash flow last year and gear back up for reopening.
The American movie theater chain that has become an epicenter of pitched battles between retail investors and hedge funds over the past couple of months, and is set to take center stage this week as the company raises new capital and a dedicated army of Redditors aim to take advantage of the stock’s elevated short interest to eviscerate predatory hedge funds.
AMC along with GameStop (NYSE:GME) are the more well known “stonks” or “meme stocks” investors have been pushing higher against short interest. In that same vein, there are a couple of lesser known short squeeze candidates we’re eyeing.
Clovis Oncology Inc (NASDAQ: CLVS) is a biotechnology company. Currently, 42% of the float is short. The short interest could be prime for a squeeze as the company is set to present four abstracts featuring data from clinical studies evaluating Rubraca and/or lucitanib and one abstract on real world data of PARP inhibitor usage, during the 2021 American Society of Clinical Oncology (ASCO) Annual Meeting to be held virtually, June 4-8, 2021. Which is why now is a good time to look at this biotech company.
Allied Energy Corporation (OTCMKTS:AGYP) is a well-positioned oil & gas exploration company with several projects, and new deals in the pipeline. In the interest of squeezing the shorts, AGYP is currently down 50% off its February high, with a decent-sized short position reported by the OTCshortreport, any sort of momentum could result in a squeeze bringing the company back to its highs. The rising price of oil and AGYP’s current news are reasons the shorts may start to get a little weary.
