Stone Energy Corporation (NYSE:SGY) recently made a massive overnight move when it jumped 300% in a day. Traders looking for stocks to buy that could double in a single day are always on the hunt for names like SGY. It’s impossible to reliably predict stocks that will make these massive moves, but there are two metrics in particular that indicate a stock with explosive potential.
Other stocks that have delivered 300% to 1000% short-term gains in recent months, including DryShips Inc. (NASDAQ:DRYS), EnteroMedics Inc (NASDAQ:ETRM), all have extremely low floats and extremely high short interest. Those two metrics aren’t necessarily the catalysts that drive a stock higher, but they can indicate that, if the stock gets moving in the right direction, it may take off like a rocket.
If you can stomach the extreme risk, here are three stocks that could double at any time.
Stocks to Buy That Could Double: Cesca Therapeutics (KOOL)
I included Cesca Therapeutics Inc (NASDAQ:KOOL) on my last list of stocks to buy with major short squeeze potential. Since that time, the market has crammed even more gunpowder into KOOL stock. At this point, all it needs is a spark.
Cesca is a biotechnology company that develops blood and bone marrow processing systems. For traders looking for stocks that could double, it doesn’t actually matter what these companies do. In fact, most of the low-float, high-short companies are running terrible businesses. If they weren’t, they wouldn’t have so many short sellers betting against them.
KOOL stock has a miniscule float of only about 1.5 million. However, it has a huge short interest of about 29.3% of float. That number is up from about 26% since January.
The company has a history of huge short-term moves. Last year the stock climbed from a May low of $1.85 to an August high of $7.39. It nearly doubled in three days in December as well. As a long-term investment, KOOL stock may be a terrible, but when it comes to stocks that could double overnight, it’s got to be at the top of the list.
Stocks to Buy That Could Double: Cellectar Biosciences (CLRB)
Cellectar Biosciences Inc (NASDAQ:CLRB) is another biotech stock with explosive potential. CLRB is developing phospholipid ether-drug conjugates (PDCs) for cancer treatment and diagnostics. You don’t need to know anything about PDCs to recognize that CLRB could double or triple overnight.
CLRB stock currently has a very small float of only 3.2 million shares. At the same time, its short percent of float is 39.5%, which is extremely high. With a setup like that one, CLRB doesn’t need to cure cancer to double in a day or two.
Much like KOOL, traders can see evidence of CLRB’s potential simply by looking at a one-year chart. Back in May of 2016, CLRB stock jumped from a low of $1 to a high of $4.93 in a matter of two days.
CLRB stock may be a terrible idea for a retirement account. In fact, it’s down nearly 50% overall in the past year. But if you’re looking to trade stocks that could double overnight, CLRB’s tiny float and extremely high short interest make it worth a look.
Stocks to Buy That Could Double: RXi Pharmaceuticals (RXII)
RXi Pharmaceuticals Corp (NASDAQ:RXII) is a clinical-stage pharmaceutical company developing ribonucleic acid interference (RNAi) treatments in dermatology and ophthalmology. Once again, the company’s business and long-term viability have little to do with its short-term trading potential. RXII stock currently has a float of only 3.2 million. At the same time, its short interest is an extremely high 35.3% of float.
As recently as November, RXII stock surged from $1.20 to $2.93 in only three days. Of course, the common theme among all these stocks is that the big moves are short-term trading opportunities and nothing more. Since peaking at $2.93 less than four months ago, RXII stock is down roughly 80%.
Clearly, timing is a critical part of capturing the huge short squeezes in these types of stocks. Fortunately, when a stock is up 100% or more in a single day, your timing doesn’t have to be perfect to capture major gains. You must make sure that if you buy any of these stocks, however, that you remain diligent. RXII, CLRB and KOOL all seem to be in long-term downtrends. If you blink, you might miss your chance at major gains.
As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities.