Monday, January 21, 2008

High Short Interest Names

The following stocks have high short percentages. The numbers in parentheses next to the symbol represent the short % of the float. All numbers are from Short Squeeze. I have rounded the numbers up or down accordingly.

The reason I'm posting these is because should we get some type of panic bottom, short covering could be huge. I remember from reading Reminiscenses of a Stock Operator that Livermore looked to cover shorts on huge events or down days.

Also, I just went through the stocks on my screens, not all the stocks on the NYSE. If anyone knows of other good stocks to trade with high short percentages, please share. I didn't include the homebuilders, because I generally stay away from stocks that trade below $15 a share.

Here's some stocks that could see substantial short covering during a market bottom.

VMC (11) RWT (33)
TNH (11) JLL (11)
TRA (18) MBI (37)
PMI (19) PCR (16)
MTG (25) AMG (21)
ABK (35) LAZ (14)
FMD (30) GHL (39)
FED (69) CNS (27)
DSL (59) BSC (16)
UA (32) LNN (16)
AGO (13) ARE (12)
AIT (11) AXE (10)
AZZ (9) ANR (11)


KC Equity Trader said...


I too was thinking about Reminiscenses of a Stock Operator when it mentions covering shorts on huge events or down days.

I was thinking that the day will probably start off with a huge gap down and panic selling or massive short attacks sending the markets lower giving the big boys with big short positions to unwind. I don't think they will go long like they did last March, but they could create a nice short covering rally in the after noon. Earnings and the economy has been so bad that I don't think any ones dares to go long.

Worst case scenario, the big boys continue to add to their short position and we really head to into a recession.

It's easier to make a lot of money on the short side though. As the expression goes, "the market takes the stairs up, but the elevator down."

Bluedog said...

Nice contrarian thinking, DT. Thanks for the info.


Dinosaur Trader said...


At this point, the "easy money" on the short trade has been made... barring a rate cut, we'll be down between 10-15% in just the last few days.

Livermore would cover some at least!

Anyway, it will be fun today. I hope I don't get too smoked.

Futures crashing to the lows as I type. Down 68.50.


Denarii said...

DT- is there any reason why all the names are NYSE?