SunPower Leading Possible Solar Short Squeeze

SunPower Corporation SPWR shares were soaring higher by 14.8 percent on Wednesday on extremely heavy volume. The company issued disappointing 2017 guidance on Wednesday and announced a 25 percent reduction in its workforce to cut costs.

SunPower is a global residential and commercial solar technology company. According to shortsqueeze.com, SunPower currently has a whopping short percent of float at 43.0 percent.

Short squeezes and potential short squeezes have drawn a lot of attention in recent weeks following the incredible squeeze in shipping stock DryShips Inc DRYS. The shocking squeeze sent shares of DryShips from below $4 to above $100 and then back below $5 within a matter of days.

With such high short interest, SunPower could be the next under-the-radar short squeeze candidate.

SunPower initially sold off by nearly 15 percent following Donald Trump’s election victory last month. Trump's support for the U.S. fossil fuels industry may be bad news for alternative energy. However, With SunPower down more than 70 percent in the past year, short sellers may have determined the post-election sell-off was the best opportunity to close out the trade.

Heavily-shorted solar stocks JinkoSolar Holding Co., Ltd. JKS and Canadian Solar Inc. CSIQ are also up more than 7.5 percent on Wednesday.

SunPower currently has 20.3 million shares held short with 5.7 days to cover.