Stocks quoted in this article:
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: Amcore Financial Inc (AMFI), Freddie Mac (FRE), Metabolix, Inc. (MBLX), Amedisys Inc (AMED), Discovery Laboratories (DSCO), Clean Energy Fuels Corp. (CLNE), Fannie Mae (FNM), Coinstar Inc (CSTR), Las Vegas Sands Corp (LVS), St. Joe (JOE), Teradyne (TER), Overseas Shipholding Group (OSG), Century Aluminum (CENX), ATP Oil & Gas Corp (ATPG), MGM Mirage (MGM), ITT Educational Services (ESI), Forest Oil (FST), Jazz Pharmaceuticals, Inc. (JAZZ), Superior Well Services, Inc. (SWSI), Berry Petroleum (BRY), Swift Energy (SFY), New York Times (NYT), W&T Offshore, Inc. (WTI), Gannett Co. (GCI), NCI Building Systems (NCS).
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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