Why You Should Buy Short Squeeze Stocks

Since the stock market has taken a few big drops recently, now might be a perfect opportunity to buy short squeeze stocks. What is a short squeeze stock, you may ask?
A short squeeze takes place when large number of short sellers have shorted a stock, and the stock comes out with unexpected good news, causing the price of the stock to spike by a huge amount, because all the short sellers have to scramble to cover their positions by buying in their shares. This mad dash to buy often generates margin calls, which causes more buying and higher prices of the stock.
Potential short squeeze plays have several metrics to compare one stock to another. One of the most popular metrics is the Short Interest Ratio, also known as the Days to Cover. This measures the number of days it would take the short sellers to cover their positions based on the average daily trading volume. The longer it would take to cover, the higher the ratio. Another analysis is the number of shares that are currently shorted as a percentage of the float (the float is the number of shares that are actively traded). The higher the percentage of shorted shares, the greater the chance that an upside surprise would drive up the price.
Here is an example. ITT Educational Services Inc. (ESI), the for-profit education company, has a short ratio of about 16. This means that if the short sellers wanted to cover their shorts, it would take them approximately 16 days to close their positions, based on the average daily trading volume. In addition, an incredible 57% of the float has been shorted. Just the slightest bit of good news could send the stock skyrocketing. The stock currently trades at nine times trailing earnings and 11 times forward earnings.
Another stock with a high short interest is j2 Global, Inc. (JCOM), the cloud computing and digital media company based at Hollywood Boulevard in California. The stock has an outrageously high short ratio of 28, which means it would take a month for the short sellers to cover. 27% of the float has been shorted. It trades at 19 times trailing earnings and 16 times forward earnings. What is interesting is that the latest reported quarterly earnings were up 16% on a 58% boost in revenues.
Obviously, there is no guarantee that good news will hit these stocks, but if it does, the rise in the price can be substantial. If you list interesting stock lists like this, check out the free stock lists at WallStreetNewsNetwork.com.
Disclosure: The author didn't own any of the above at the time the article was written.
By Stockerblog.com

Books by and about Warren Buffett, George Soros, Carl Icahn, and T. Boone Pickens

Here is a list of books about the top investment traders Warren Buffett, the billionaire head of Berkshire Hathaway (BRK-A) (BRK-B), George Soros, Carl Icahn, and T. Boone Pickens. Some are written by these famous investors and some are about them, written by others.

by Buffett

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel Warren E. Buffett (Collaborator)

The Essays of Warren Buffett: Lessons for Corporate America, Third Edition Warren E. Buffett (Author) Lawrence A. Cunningham (Author, Editor)

Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger, Expanded Third Edition Warren E. Buffett (Foreword)

Los ensayos de Warren Buffett (Spanish Edition) Warren E. Buffett (Author)
Carl Icahn

King Icahn: The Biography of a Renegade Capitalist
Buffett, Icahn, Soros

Becoming Rich: The Wealth-Building Secrets of the World's Master Investors Buffett, Icahn, Soros
George Soros

Soros on Soros: Staying Ahead of the Curve by George Soros

The Crash of 2008 and What it Means: The New Paradigm for Financial Markets by George Soros
T. Boone Pickens

The First Billion Is the Hardest: Reflections on a Life of Comebacks and America's Energy Future by T. Boone Pickens

Boone Pickens: The Luckiest Guy in the World by T. Boone Pickens

about Buffett

Trade Like Warren Buffett

The Warren Buffett Way, Second Edition

The Snowball: Warren Buffett and the Business of Life

The Winning Investment Habits of Warren Buffett & George Soros

The New Buffettology: The Proven Techniques for Investing Successfully in Changing Markets That Have Made Warren Buffett the World's Most Famous Investor

Warren Buffett Speaks: Wit and Wisdom from the World's Greatest Investor

The Tao of Warren Buffett: Warren Buffett's Words of Wisdom: Quotations and Interpretations to Help Guide You to Billionaire Wealth and Enlightened Business Management


By Stockerblog.com

Stocks Going Ex Dividend the First Week of September

  Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, many with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, and the yield.

Enerplus Corporation (ERF) 9/3/2013 6.6%

Cedar Fair L.P. (FUN) 9/3/2013 5.8%

Kronos Worldwide Inc (KRO) 9/3/2013 3.9%

NL Industries (NL) 9/3/2013 4.4%

PDL BioPharma Inc (PDLI) 9/3/2013 7.4%

Swisscom AG (SCM) 9/3/2013 9.1%

Weingarten Realty (WRI) 9/3/2013 4.2%

American National Bankshares (AMNB) 9/4/2013 4.0%

Gannett (GCI) 9/4/2013 3.2%

Kimberly-Clark (KMB) 9/4/2013 3.4%

Old Republic International Corp (ORI) 9/4/2013 4.9%

Public Service Enterprise Group (PEG) 9/4/2013 4.4%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WallStreetNewsNetwork.com or WSNN.com. Most of the lists are free.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List
Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Book now available: Buying Dividends Revised and Expanded
Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

This Stock is Up 250,000% Right Now

Anyone who has been reading my articles recently have noticed that I like to write about unusual stocks and unusual stock movements. You may have read The Stock that was Up One Thousand Percent Today and The Stock that was Up 11000% on Friday. Now there is one that takes the cake.

If you looked at Kbridge Energy Corp. (BMMCF) on Yahoo! Finance today, Tuesday, August 27, 2013, 12:49PM EDT, you would see that the stock is up 259,934.34% today!!! (See graphic)

The previous close was 0.0002 per share, and now it is trading for 0.52 per share. In other words, if you had invested $100 in the stock to buy 500,000 shares, it would now be worth $260,000. The company is a broker for energy and resource related contracts in South Korea. It is based in Las Vegas, Nevada

Is this a sign that we are in a bubble? As always, I never recommend anyone buy or short these kinds of stocks.