NAOV Stock: Why Retail Investors Are Betting on a Big Squeeze for NanoVibronix


Today, investors in NanoVibronix (NASDAQ:NAOV) are seeing impressive gains. Indeed, the move of more than 50% higher in NAOV stock is significant, given the otherwise red day in the markets today.

person in white doctor's coat holding a clipboard that says "pain management"
Source: Shutterstock

NanoVibronix is a relatively little-known company that produces noninvasive biological response-activating devices targeting wound healing and pain therapy. Currently, the company has a market capitalization of roughly $90 million. Given the small cap nature of this stock, as well as its low price per share, NAOV stock has received some interest from retail traders of late.

Indeed, NanoVibronix’s short interest of around 24% is reason enough for many speculators to jump aboard. This is a company with a low float, small market cap, high short interest and increasing visibility on social media boards. In other words, this company is positioned perfectly for a short squeeze. Or at least, retail traders hope that this is a candidate to join in on the fun.

Let’s take a look at one additional reason why retail traders are jumping on NAOV stock today.

NAOV Stock Higher on Key Short-Squeeze Report

Retail traders looking to find the next short squeeze often peruse a number of data sources to find the “next” candidate. Many investors are already well aware of Reddit’s r/WallStreetBets subreddit that has garnered so much attention of late.

However, one other key source many speculators look to is Fintel’s Short-Squeeze Opportunities list. This list, updated yesterday, pegs NanoVibronix as the top short-squeeze candidate, citing the above mentioned metrics. Additionally, this report focuses on the extremely high borrow fee rate of 118%, making the cost to borrow very high. This is another factor investors consider when looking for reasons to jump on a short-squeeze candidate.

Today’s move indicates there’s some prevailing sentiment that NAOV stock may be a great short-squeeze play. Indeed, investors looking to play a short-squeeze appear to have a good option in NAOV. That said, this is likely to be a highly volatile stock. Accordingly, investors should act prudently with sizing such positions in their portfolio.

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 Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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