Short Squeeze Candidates

One of the stock scans at Penn Financial Group (PFG) searches for stocks that have a high Short Interest Ratio (above 8) and trading within 5% of a new 52-week high. The theory behind this scan is that stocks with large short positions could be candidates for a short squeeze if they break out to new highs.

(A short squeeze occurs when the short sellers cover their positions. To do this they must buy back the stock creating a frenzy of buyers and a big move higher.)

Here are a few from the scan:

• Conn's ($CONN) - Electronics Store
• Universal Corp ($UVV) - Tobacco Products
• FTI Consulting ($FCN) - Business Services
• Astronics ($ATRO) - Aerospace/Defense
• Genesee & Wyoming ($GWR) - Railroads