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This Short Squeeze Candidate Could Actually Pan Out in the Long-Run


Hunting down short squeeze candidates isn't a great stock-picking strategy. Short squeezes can certainly be amazingly bullish events. But timing them can be tricky, and these rallies are typically short-lived.

However, just because a stock is ripe for a short squeeze doesn't inherently mean the underlying company doesn't have good growth prospects. Short interest is simply something the trading crowd determines for a particular stock based on its collective perception of that company's future -- a perception that may be swayed by a subset of speculators with a short-term trading agenda.

Image source: Getty Images.

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Source Fool.com

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