Date updated:01-29-2008
Beware of stocks getting an artificial bounce from a short squeeze. Instead, Jeff Macke explains how to use the squeeze to get out of bad stocks while you still can.

-
CROX
Crocs - $1.41
- -9.03%
- $1.51
Pete Najarian looked at Crocs (CROX) a stock where almost 16 million of 70 million shares outstanding are short. Buy CROX in the hope of getting an upside squeeze, he said, but don’t always look for quick gains in heavily shorted stocks, he warned. Sometimes the shorts are right.

-
IHOP
Ihop - $0.00
- N/A
- $N/A
Karen Finerman pointed out IHOP (IHP) a winner in a space that’s otherwise been annihilated. With a float that’s 33% short interest, Karen said IHOP is a perfect example of how to use a bounce to make a “graceful exit."

-
LXK
Lexmark Intl Inc - $28.37
- -1.22%
- $28.29
From many of the homebuilders to left-for-dead printing company Lexmark (LXK), investors don’t have to look far to find a short squeeze candidate, Jeff Macke said. But it can be a treacherous way to play the market, as the pop all too quickly will turn back into a drop.
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These stocks were downgraded by TheStreet.com Ratings on Dec. 29, 2008. more
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