One unique innovator within the food and beverage space has received considerable attention recently after being marked by experts as a likely candidate for a short squeeze. NuZee (NASDAQ:NUZE) is known for producing single-serve coffee solutions. This week, though, it’s been in the news for other reasons after being named by financial intelligence platform Fintel as one of the most likely short squeeze candidates this week. This type of attention has helped NUZE stock shoot up today as speculation mounts.
What’s Happening With NUZE Stock
This sustainable coffee producer didn’t start the week with too much excitement, but today has been a different story. Since markets opened, NUZE stock has been rising and closed up 31%. While it didn’t begin rising until the middle of the day, NuZee quickly rallied and shows no sign of slowing down in after-hours trading.
This really does mark a change of pace for NUZE shares. Over the past five days, the stock has been rather stagnant until catching fire today.
What It Means
It’s not hard to see why NUZE stock has seen this type of sudden growth. As InvestorPlace Assistant News Writer Eddie Pan reported yesterday, NUZE was the No. 2 stock on Fintel’s list of the most likely short squeezes of the week.
As Pan noted, “What’s most striking about NuZee is that the cost to borrow shares is 136%. NUZE stock recently climbed from a low of $1.95 to a high of $7.60 before settling down at $3.75 last week.”
He added that NUZE’s raw short interest has recently increased by an impressive 1,621%, moving from 74,900 shares to 1.29 million. It’s worth noting that NUZE stock’s overall score for the week was 96.92, second only to top short play Pioneer Power Solutions (NASDAQ:PPSI), which received a score of 99.31. Like NUZE stock, PPSI is also in the green today, closing up by 32% on the same type of momentum.
Why It Matters
As we all know, significant short momentum tends to drive stocks to short-term gains. Fintel has made the strong case that NUZE stock should be on the radar of everyone carefully monitoring short plays. Twitter (NYSE:TWTR) investment communities are standing by, primed for a squeeze.
— Evolution Trading (@Stockalertss) November 30, 2021
— kkernttb (@kkernttb) November 30, 2021
NUZE stock could certainly be the next important squeeze. In the meanwhile, the momentum is there and plenty of investors are paying attention, reaffirming what Fintel’s analysis has told us. This is definitely a stock worth watching, particularly as anticipation mounts.
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On the date of publication, Samuel O’Brient 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.