Call the Marshalls! These stocks are about to break out

As all my readers know, my buy and sell suggestions are based on fundamental value, and the potential effect on that value of revenue and/or earnings trends that the entire market may not yet have spotted. I certainly hope my attention to fundamental value has caught on with many investors, but that said, if you've done your homework on a stock and the value is there, there's no reason not to go with a stock that looks like it might be due for an immediate upside breakout.

I used to argue that a short squeeze was the second best thing that could happen to a stock, the very best being a buyout, but over the last year, buyouts have turned boring. Usually, the stock that gets bought is already so highly valued that the buying company can't afford to offer a huge, juicy premium. The upside in a short squeeze, however, remains both huge and juicy, which is why all the stocks on today's list have high short positions, in addition to fundamental value the potential for upside surprise in earnings, and/or revenue.

As always, consider these ideas to be just that, ideas, and do your own research before investing. Also, in this case it is important to remember that data on short positions is always approximate as it is delayed by more than a month in some cases.

Julian Close

Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.

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