Today, some rather incredible moves are happening in the financial markets. Various SPAC stocks, or rather de-SPAC stocks (stocks that have closed their SPAC deals and are now publicly trading), are seeing impressive moves.
Among the list of stocks many investors have on their watch list today are: Hyliion (NYSE:HYLN), Metromile (NASDAQ:MILE), CarLotz (NASDAQ:LOTZ), Velodyne Lidar (NASDAQ:VLDR) and Skillz (NYSE:SKLZ).
Each of these companies have the common thread that they’ve recently gone through the SPAC process. Accordingly, these companies are now freely trading, without their initial NAV protection.
However, another key factor is that each of these stocks is also a preliminary Russell 2000 or Russell 3000 addition. Accordingly, these stocks are on watch for momentum traders today.
Indeed, the SPAC mania appears to have come and gone. However, the inclusion of any group of companies into a new index is big news. The fact that more institutional money and buying from various funds will be forced to take place provides an intriguing opportunity for retail investors and traders. Getting in before the big money is the name of the game. Additionally, each of these companies fits into the short-squeeze thesis taking over the markets today.
Let’s take a look at each of these companies’ respective short interest ratios right now.
SPAC Stocks Soaring on a Multitude of Factors
Indeed, any group of stocks with newfound momentum is going to be targeted by the masses. These days, momentum is everything. With the following de-SPAC stocks seeing the aforementioned catalysts play out, the potential near-term upside with these stocks is what most investors have their eye on right now.
For retail traders, short interest is a key factor to consider in assessing whether the retail investor army can induce a short squeeze. Here are where the respective short interest levels of the aforementioned stocks lie. These numbers are based on the short interest as a percentage of the overall float.
- Skillz: 30.9%
- Hyliion: 22.3%
- Metromile: 16.2%
- Velodyne Lidar: 15.2%
- CarLotz: 12.9%
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
