MolyCorp (MCP) saw a 20% gain on a mix of some good news, bullish insider trading and short squeeze. MCP had a 62% short position as of 15 November so it did not take much to propel this stock upward as the shorts had to cover quickly. So, are there other stocks in the same situation? Yes, there are several other stocks where insider bulls and short selling bears are battling.
This screen was run on finviz.com looking for: very positive insider transactions (insiders net increasing their positions by more than 20%); the short float of more than 20% and a price of more than $5. The screen yielded the 17 stocks below plus MolyCorp.
|(NASDAQ:ARUN)||Aruba Networks, Inc.||Technology||Networking & Communication Devices|
|(NYSE:BYD)||Boyd Gaming Corp.||Services||Resorts & Casinos|
|(NYSE:CAS)||AM Castle & Co.||Industrial Goods||Industrial Goods|
|(NYSE:CRR)||CARBO Ceramics Inc.||Basic Materials||Oil & Gas Equipment & Services|
|(NASDAQ:DMND)||Diamond Foods, Inc.||Consumer Goods||Processed & Packaged Goods|
|(NASDAQ:FRAN)||Francesca's Holdings Corporation||Services||Specialty Retail, Other|
|(NASDAQ:FSLR)||First Solar, Inc.||Technology||Semiconductor - Specialized|
|(NYSE:GME)||GameStop Corp.||Services||Electronics Stores|
|(NYSE:JCP)||J. C. Penney Company, Inc.||Services||Department Stores|
|(NYSE:KBH)||KB Home||Industrial Goods||Residential Construction|
|(NYSE:LRN)||K12, Inc.||Services||Education & Training Services|
|(NYSE:PPO)||Polypore International Inc.||Industrial Goods||Industrial Equipment & Components|
|(SNTA)||Synta Pharmaceuticals Corp.||Healthcare||Diagnostic Substances|
|(NYSE:SWY)||Safeway Inc.||Services||Grocery Stores|
|(VPRT)||Vistaprint N.V.||Services||Business Services|
|(NYSE:X)||United States Steel Corp.||Basic Materials||Steel & Iron|
|(NASDAQ:ZOLT)||Zoltek Companies Inc.||Industrial Goods||Industrial Electrical Equipment|
Several of these stocks has been in the headlines recently. And for each stock, there are good reasons the short sellers are taking larger positions. So, if you do decide to open positions in any of these equities, be sure to set stops to protect your equity. These stocks could move up or down very quickly.
Take a closer look at these companies, who do you think will win - insiders or short sellers ?
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is only my opinion based on personal research and offered for informational purposes. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any equity, do your own research and reach your own conclusion. Investing includes risks, including loss of principal.