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.
Methodology - the query scans a 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. This can be used as a tool for finding situations where stocks with heavy short interest have begun to move.
Companies included in today's scan are: Ascent Solar Technologies Inc (ASTI), BankAtlantic Bancorp (BBX), Ruth's Chris Steak House, Inc. (RUTH), Anchor BanCorp Wisconsin (ABCW), Williams-Sonoma (WSM), Amcore Financial Inc (AMFI), Ambac Financial Group Inc (ABK), Las Vegas Sands Corp (LVS), Sunesis Pharmaceuticals, Inc. (SNSS), Biodel Inc. (BIOD), Jazz Pharmaceuticals, Inc. (JAZZ), Photronics (PLAB), La-Z-Boy Incorporated (LZB), Netlogic Microsystems (NETL), MGM Mirage (MGM), iStar Financial (SFI), Winnebago Industries (WGO), Boyd Gaming Corp (BYD), Zale Corp. (ZLC), Saks Incorporated (SKS), Lumber Liquidators (LL), Cascade Bancorp (CACB), Ferro Corp. (FOE), FuelCell Energy (FCEL), InnerWorkings, Inc. (INWK).