Ubiquiti, Newsmax Among Stocks Flagged for Potential Short Squeeze

A market screen has identified three U.S. stocks—Ubiquiti (UI), Newsmax (NMAX), and Horizon Quantum Holdings (HQ)—as potential candidates for a short squeeze based on a combination of fundamental and technical factors, an analysis by Investing.com showed.

The selection relies on proxies for squeeze conditions, as the screen did not use verified short-interest data.

Screening Criteria

The analysis focused on companies exhibiting traits often associated with stocks susceptible to a short squeeze. The screen identified firms with the following characteristics:

• A public float below 35%
• Beta above 1.5, indicating higher-than-market volatility
• Positive price returns over the last week and three months
• Market capitalization above $300 million
• Average daily trading value over $10 million

Investing.com noted that while this method is a "useful squeeze proxy," it is not definitive proof that a large number of short sellers are positioned for a potential forced buyback.

Potential Candidates Profiled

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Each of the three identified companies presents a different risk-and-reward profile based on the analysis.

• Ubiquiti (UI): Highlighted for its extremely tight public float of just 7.0% and a beta of 1.66. The analysis pointed to a technically bullish chart setup but also noted significant valuation risk, citing a Barclays "Underweight" rating and a $489 price target, well below its recent trading price near $600.
• Newsmax (NMAX): This stock was flagged for its strong recent momentum, including a 39.42% gain over the past month. However, the report also pointed to the risk of profit-taking and a recent stock sale of approximately $357,000 by a director and 10% owner.
• Horizon Quantum Holdings (HQ): Characterized as the most speculative candidate, HQ has an exceptionally high beta of 3.17. The analysis stressed that the company has reported zero revenue and continues to post losses, suggesting any rally would be reflexive and not supported by business fundamentals.

Market and Technical Outlook

The report emphasized that a true short squeeze typically requires a specific catalyst, a surge in trading volume, and a sustained price move above key resistance levels. Without these confirmations, the recent price action in these stocks could be attributable to momentum trading rather than the start of a squeeze.

The analysis concluded that Ubiquiti has the highest-quality setup, Newsmax exhibits the strongest momentum, and Horizon Quantum Holdings offers the most potential for raw volatility.