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: PMI Group (PMI), South Financial Group (TSFG), Movado Group (MOV), First BanCorp. (FBP), Sterling Financial (STSA), Sunesis Pharmaceuticals, Inc. (SNSS), Eastman Kodak (EK), Houston Wire & Cable Company (HWCC), Harley-Davidson (HOG), Overstock.com Inc (OSTK), Cree Inc (CREE), Las Vegas Sands Corp (LVS), Hanmi Financial (HAFC), MGM Mirage (MGM), Louisiana-Pacific (LPX), Isle of Capris Casinos (ISLE), Ruth's Chris Steak House, Inc. (RUTH), Arbitron (ARB), Berry Petroleum (BRY), La-Z-Boy Incorporated (LZB), James River Coal Co (JRCC), Banner Corp. (BANR), Builders FirstSource, Inc. (BLDR), Veeco Instruments Inc (VECO), Netflix Inc (NFLX).