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If you consider yourself a contrarian investor, here are some ideas you may find interesting.

We ran a screen on highly-shorted stocks, which had an increase in short selling month over month equal to at least 2% of share float. Then we looked for bullish sentiment from company insiders, with significant net insider buying over the last six months equal to at least 2% of share float.

Insiders, naturally, work at the companies in question and have more knowledge about the firm than outsiders. When they put their own money on the line to purchase their company's shares, it indicates they are bullish about the firm's future, and believe current share price is undervalued.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Short sellers are pessimistic but insiders seem to think their companies offer good value at current levels - do you think these stocks will soon turn around?

Use this list as a starting point for your own analysis.

1. Molycorp, Inc. (NYSE:MCP): Focuses on the production and sale of rare earth oxides from stockpiled feedstocks in the western hemisphere.

  • Market cap at $440.25M, most recent closing price at $5.35.
  • Shares shorted have increased from 29.45M to 34.71M over the last month, an increase which represents about 5.91% of the company's float of 89.07M shares. Days to cover ratio at 3.79 days.
  • Over the last six months, insiders were net buyers of 22,237,000 shares, which represents about 24.97% of the company's 89.07M share float.
  • More downside: Net institutional sales in the current quarter at -7.3M shares, which represents about 8.2% of the company's float of 89.07M shares.
  • More upside: The company has reported strong earnings growth over the last year, with EPS growing by 254.95%, higher than competitors like BHP Billiton plc (EPS growth over the last year at -32.44%) and Vale S.A. (EPS growth over the last year at -68.33%).

2. Navistar International Corporation (NYSE:NAV): Through its subsidiaries, manufactures and sells commercial and military trucks, buses, diesel engines, recreational vehicles (RVs), and chassis, as well as provides service parts for trucks and trailers.

  • Market cap at $2.77B, most recent closing price at $34.54.
  • Shares shorted have increased from 14.52M to 15.99M over the last month, an increase which represents about 2.85% of the company's float of 51.64M shares. Days to cover ratio at 7.55 days.
  • Over the last six months, insiders were net buyers of 3,353,100 shares, which represents about 6.49% of the company's 51.64M share float.
  • More downside: The company's earnings growth looks weak, with EPS growing by -292.39% over the last year. This is considerably weaker than competitors like Wabash National Corp. (EPS growth over the last year at 598.64%) and Hyster-Yale Materials Handling, Inc. (EPS growth over the last year at 18.50%).
  • More upside: Net institutional purchases in the current quarter at 15.4M shares, which represents about 29.82% of the company's float of 51.64M shares.

3. Office Depot, Inc. (NYSE:ODP): Together with its subsidiaries, supplies office products and services.

  • Market cap at $1.14B, most recent closing price at $3.99.
  • Shares shorted have increased from 23.77M to 37.51M over the last month, an increase which represents about 5.84% of the company's float of 235.40M shares. Days to cover ratio at 3.37 days.
  • Over the last six months, insiders were net buyers of 11,023,100 shares, which represents about 4.68% of the company's 235.40M share float.
  • More downside: The company's earnings growth looks weak, with EPS growing by -246.68% over the last year. This is considerably weaker than competitors like PetSmart (EPS growth over the last year at 39.57%) and Tractor Supply Company (EPS growth over the last year at 26.10%).
  • More upside: In February OfficeMax and Office Depot agreed to combine. While the deal is reviewed by regulators investors are hesitant. Meanwhile, A Janney Capital Markets analyst recently said he is becoming more optimistic about the merge saying "their earnings as a combined company could be almost double what they are achieving separately."

For a complete picture, here are 2 other stocks that are seeing significant insider buying but only marginal short covering as a percentage of share float month-over-month:

1. Genomic Health Inc. (NASDAQ:GHDX): Shares shorted have increased from 1.89M to 2.14M over the last month, an increase which represents about 1.57% of the company's float of 15.96M shares. Days to cover ratio at 10.39 days. Over the last six months, insiders were net buyers of 1,188,223 shares, which represents about 7.45% of the company's 15.96M share float.

2. SandRidge Energy, Inc. (NYSE:SD): Shares shorted have increased from 50.12M to 54.28M over the last month, an increase which represents about 1.28% of the company's float of 325.40M shares. Days to cover ratio at 4.96 days. Over the last six months, insiders were net buyers of 7,971,966 shares, which represents about 2.48% of the company's 321.60M share float.

*EPS, short and insider data sourced from Yahoo! Finance, institutional data from Fidelity, all other data sourced from Finviz.

Source: 3 Highly Shorted Stocks Being Bought By Insiders