10/20/2009 8:27 AM
permanent linkKeywords:
SNIC
FUQI
SWI
ISRG
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: Sonic Solutions (SNIC), Capitol Bancorp. (CBC), Geron Corp. (GERN), Manitowoc (MTW), Fuqi International Inc (FUQI), Gannett Co. (GCI), Sohu.com (SOHU), CIT Group Inc (CIT), CVB Financial (CVBF), Caribou Coffee Company Inc (CBOU), Zale Corp. (ZLC), Atlas America (ATLS), SolarWinds Inc (SWI), ArvinMeritor (ARM), Media General (MEG), AutoNation (AN), New York Times (NYT), McMoRan Exploration (MMR), Volcom, Inc. (VLCM), AnnTaylor Stores (ANN), Unisys Corp. (UIS), Sturm, Ruger & (RGR), Human Genome Sciences (HGSI), THQ (THQI), Intuitive Surgical Inc (ISRG).
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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-posted by Nick Perry
10/20/2009 8:27 AM
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