Some pretty incredible moves are happening in the financial markets today. Various SPAC stocks, or rather de SPAC stocks (stocks that have completed their SPAC trades and are now publicly traded) are seeing impressive moves.
Source: iQoncept / ShutterStock.com
The list of stocks many investors have on their watchlist today include: Hyliion (NYSE:SHELF), Metromile (NASDAQ:MILE), Carlotz (NASDAQ:LOTZ), Velodyne Lidar (NASDAQ:VLDR) and Skillz (NYSE:SKLZ).
All of these companies have the common denominator that they recently went through the SPAC process. Accordingly, these companies are now trading freely without their initial NAV protection.
Another important factor, however, is that each of these stocks is also a temporary addition to Russell 2000 or Russell 3000. Accordingly, these stocks are on the alert for momentum traders today.
Indeed, the SPAC mania seems to have come and gone. However, the addition of any group of companies to a new index is big news. The fact that more institutional monies and purchases from various funds are being forced presents a fascinating opportunity for retail investors and traders alike. Getting in before the big bucks is the name of the game. In addition, each of these companies fits into the short squeeze thesis that are taking the markets today.
Let’s now take a look at the respective short interest rates for these companies.
SPAC stocks rise due to a variety of factors
In fact, any group of stocks with newly gained momentum will be targeted by the masses. Momentum is everything these days. With the above catalysts coming to fruition in the following de SPAC stocks, most investors right now have their eyes on the potential short-term upside potential of these stocks.
For retailers, short interest is an important factor in assessing whether the army of retail investors can trigger a short squeeze. This is where the respective short interest rate levels of the stocks mentioned above are located. These numbers are based on the short interest as a percentage of the total float.
- Skillz: 30.9%
- Hyliion: 22.3%
- Metro mile: 16.2%
- Velodyne lidar: 15.2%
- CarLotz: 12.9%
At the time of this writing, Chris MacDonald held (neither directly nor indirectly) positions in the securities discussed in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s posting guidelines.