Many tech investors like to hunt for companies that could be the next hot stock — ones that have the potential for quick and steep rallies that defy the broad market’s expectations and perhaps even their own underlying fundamentals.
Investing is a long-term endeavor, but if you’re looking for the next potential parabolic tech play, you might want to start by considering unloved stocks that have obvious flaws and are heavily shorted. Assuming such companies are able to resolve their pressing issues, their short-sellers would need to cover their positions — sometimes hastily. That situation of shorts having to sell can spark short-squeeze rallies and attract the attention of more growth-oriented investors.
Currently, I found three potential parabolic gainers worth looking at.
This post originally appeared at The Motley Fool.