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: Jackson Hewitt Tax Services (JTX), Silicon Motion Technology Corp (SIMO), Dollar Thrifty Automotive Group (DTG), Ambac Financial Group (ABK), InterMune Inc (ITMN), Cascade Bancorp (CACB), Hovnanian Enterprises (HOV), Power-One (PWER), Veeco Instruments (VECO), Biodel Inc. (BIOD), Lithia Motors (LAD), Lululemon athletica Inc (LULU), YRC Worldwide Inc (YRCW), TBS International Limited (TBSI), Isle of Capris Casinos (ISLE), Coinstar (CSTR), Arbitron (ARB), Crocs, Inc. (CROX), Clean Energy Fuels Corp. (CLNE), ARIAD Pharmaceuticals (ARIA), CBL & Associates Properties (CBL), EnerNOC, Inc. (ENOC), Evercore Partners Inc. (EVR), Overstock.com Inc (OSTK), Sunesis Pharmaceuticals, Inc. (SNSS).