High short interest is a potential source of future demand. One of the most profitable setups in the stock market involves a combination of new 52-week highs + high short interest. When a stock makes new 52-week highs, all shorts from the past year are losing money. The higher one heavily shorted stock goes, the more likely are its shorts to cover and send its price even higher with their forced buying.
The following stocks have very high short float (>20%) and are trading near multi-year highs. Keep an eye on them:
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