Stocks Advancing Amid Heavy Short Interest - iStar Financial, American Capital Ltd, USG Corp, New York Times Co

As explained in our education section, short interest is a useful sentiment indicator that measures the level of investor pessimism toward a stock. While it isn't always a simple "long only" indicator, it can give you insight into situations where you might see concentrated buying demand. The purpose of this post is to highlight heavily-shorted stocks that could be in the midst of a potential short covering rally. More details about the methodology are listed below.

Companies included in today's scan are: iStar Financial (SFI), American Capital Ltd (ACAS), USG Corp. (USG), Beazer Homes USA (BZH), Boston Private Financial (BPFH), Amedisys Inc (AMED), New York Times Co (NYT), MercadoLibre Inc (MELI), Wilmington Trust (WL), Polaris Industries (PII), Arch Coal (ACI), Gannett Co. (GCI), Hovnanian Enterprises (HOV), ATP Oil & Gas Corp (ATPG), VALLEY NATIONAL BANCORP (VLY), Susquehanna Bancshares (SUSQ), S&T Bancorp (STBA), CVB Financial (CVBF), CompuCredit (CCRT), TCF Financial (TCB), First Tennessee National (FHN), Hecla Mining (HL), Vulcan Materials (VMC), Blackbaud (BLKB), Webster Financial (WBS) .

Methodology - the query scans my database of companies which has some basic filters to eliminate stocks that don't trade frequently. The table above is a filtered list of stocks that have at least 10 percent of their float sold short and showed a gain in the previous trading day. I use this as a tool for finding situations where stocks with heavy short interest have begun to move.

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