Short Idea: K12 Inc.

Jul.10.09 | About: K12 Inc. (LRN)

In this week’s Barron’s cover story “Shorts Story” they report on a small North Carolina-based research firm called Short Alert who have been recommending stocks to short since 1998.

One of their five recommendations in 2009 is a company called K12 Inc (NYSE:LRN); LRN runs a “virtual public school” which offers online education programs to kindergarten through to 12th grade. The short base (as measured by the percent of shares outstanding on loan) in LRN has increased over 30.25% in the last month and is currently at 24.88%.
LRN has a very high utilization (which measures the supply and demand in the securities lending market) at 83.28%, which could indicate a higher risk of a price squeeze.
Download our full Data Explorers report on LRN by clicking here.