Adami: AutoNation Sets Up for Short Squeeze

If you’re nimble, Guy Adami thinks AutoNation belongs on your radar. He sees a catalyst that could send shares screeching higher.

“It was a monster stock a few years back but now it’s fallen on hard times,” he explains.

However, now the stock may be oversold with shorts leaning into AutoNation a little too much. “There’s a 20% short interest in this name,” Adami says.

And a catalyst may have just surfaced that bodes well for bulls.

“New vehicle sales were up 45% year over year,” he says. That one data point may trigger a short covering rally.

"AutoNation is so sold I can see a short squeeze driving this stock to $38 - $39,” says Adami with investors who sold the stock short, scrambling to get out.

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Trader disclosure: On June 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is long JPM; Karen Finerman is long BAC; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM; Karen Finerman is long GRPN PUTS AND PUT SPREADS; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Tim Seymour is long BAC; Tim Seymour is long INTC; Dan Nathan is long AAPL JUNE 550/520 Put Spread; Dan Nathan is long BAC JULY 6/5 PUT SPREAD; Dan Nathan is long MS JAN 10/5 1X2 PUT SPREAD; Dan Nathan is long RIMM JAN 20/25 CALL SPREAD; Dan Nathan is long CHK JAN 12.50/7.50 PUT SPREAD; Dan Nathan is long CHK JAN 10/5 1X2 PUT SPREAD; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU

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