Welcome to Extreme Investor Network, where we provide you with cutting-edge insights and analysis to help you navigate the world of investing. Today, we’re diving into the intriguing world of short selling, a high-risk strategy that some investors use to bet on a stock’s potential decline.
One of the most shorted names in the market this week is Vinfast Auto, a downbeat auto stock that has caught the attention of short sellers. Short selling involves investors borrowing stocks and selling them off in the hopes of repurchasing them at a lower price in the future to make a profit. However, short sellers also face the risk of a short squeeze, where a stock’s price soars, forcing them to cover their shorts at a loss.
According to CNBC Pro’s screening of FactSet data, stocks with short interest of more than 25% of their float and at least $250 million in market capitalization are at risk of a short squeeze. Vinfast Auto, for example, has seen a 26% increase in short interest, with nearly 40% of its float being shorted. Despite analysts’ bullish outlook and a forecasted 104.81% upside, Vinfast has faced challenges such as a lowered delivery forecast and manufacturing delays.
Another notable short-squeeze candidate is health-care company Cassava Sciences, with short interest jumping 23% to 36% of float. Similarly, department store Kohl’s has seen short interest reach 37.3% of its total float, as consumer shopping habits shift online.
While some stocks may be at risk of a short squeeze, it’s essential to conduct thorough research and analysis before making any investment decisions. Stay tuned to Extreme Investor Network for more insights and updates on the world of investing.