The recent sharp stock market moves have created significant short-squeeze opportunities, especially for Nasdaq stocks.

A short squeeze takes place when a stock's short-sellers scramble to cover their bearish positions when that stock moves sharply upward; their buying ends up pushing shares even higher. Short positions of stocks are measured by the short-squeeze ratio, which represents the number of days it would take for the short-sellers to cover their positions based on the recent daily volume of the stock.

With this in mind, Stockpickr has compiled a list of the Top Nasdaq Short-Squeeze Plays for November.

One Nasdaq stock with a high short ratio is First Busey (BUSE), a bank holding company based in Illinois, which has a short ratio of 38.2. It recently reported that its consolidated net income for the quarter ending in September of 2008 was 25 cents per fully diluted share, vs. 36 cents per fully diluted share for the same period in 2007. The stock has a P/E of 23, a PEG of 2.81 and a yield of 4.1%.

First Busey shows up in a Stockpickr portfolio called FDIC Toxic 90 Banks, which attempts to recreate the FDIC's private list of 90 publicly traded banks that might fail. The list also includes Zions (ZION), with a short ratio of 9.5; KeyCorp (KEY), with a short ratio of 1.7; and Fifth Third Bancorp (FITB), with a short ratio of 4.0.

Another heavily shorted stock is Mobile Mini (MINI), a provider of portable storage units, which has a short ratio of 23.3. Coverage was just initiated on Mobile Mini by Deutsche Securities with a hold recommendation. The stock has a P/E of 14 and a PEG of 0.66.

Mobile Mini is owned by the Pacific Advisors Small Cap Fund, which has a Morningstar rating of three stars and is managed by George Henning. The fund has had an average return of 36.68% over the last five years. It also owns Hornbeck Offshore Services (HOS), with a short ratio of 3.1; Terra Industries (TRA), with a ratio of 0.7; and Kirby (KEX), with a 3.7 ratio.

Usana Health Sciences Inc. (USNA) is another heavily shorted stock, with a short ratio of 20.8. This distributer of nutritional and personal care products reported that its third-quarter profit was down 28% and cut its outlook for next year. The stock has a P/E of 15 and a PEG of 0.95.

Usana is owned by the Winslow Green Growth Fund, a fund with an objective of capital appreciation through environmentally responsible investing. It has had an average annual return of 27.07% over the last five years. It also holds First Solar (FSLR), with a short ratio of 0.9; Green Mountain Coffee Roasters (GMCR), with a 24.5 ratio; and Chipotle Mexican Grill (CMG), with a 9.1 ratio.

For more ideas, check out the portfolio of Top Nasdaq Short-Squeeze Plays for November at Stockpickr.com.

Posted on Nov. 9, 2008