Will SandRidge Squeeze the Energy Out of Shorts?

With shares of SandRidge Energy (NYSE:SD) trading at around $7.28 is SD an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

SandRidge was trading at $5.80 only five days ago. There has been quite a move since then. The original move most likely took place because a large shareholder launched a website demanding a change in management. The overall message was that management at SandRidge doesn’t have shareholders’ best interests in mind. This bold move has led to a shareholder revolt against the company, which in turn has led to a short squeeze. As more shorts get nervous and cover their positions, the stock continues to rise. Considering there is (or was) a 15.10%, this will be a relatively large short squeeze.

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If you’re looking at SandRidge from a macro point of view, then the information below might be of interest to you.