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Here we present a list of 11 stocks that have seen significant increases in the number of shares shorted month-over-month. These stocks have also seen their 50-day moving average cross below their 200-day MA, a bearish signal known as the “Death Cross.”

Now that bearish momentum has started dragging these stocks lower, how long before short sellers cover their positions? Read below, using this list as a starting-off point for your own analysis.



List sorted by increase in shares shorted.

1. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $32.48B. SMA50 at $9.34 vs. SMA200 at $9.66 (current price at $8.55). Shares shorted have increased 50.54% month-over-month (from 65.47M to 98.56M). NOK offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 6.38%, current ratio at 1.55, and quick ratio at 1.4. The stock has lost 42.5% over the last year.

2. Compania Cervecerias Unidas S.A. (NYSE:CCU): Brewers Industry. Market cap of $3.81B. SMA50 at $54.29 vs. SMA200 at $54.69 (current price at $59.81). Shares shorted have increased 37.28% month-over-month (from 50.06K to 68.72K). CCU has a relatively low correlation to the market (beta = 0.62), which may be appealing to risk-averse investors. The stock has gained 5.91% over the last week.

3. OfficeMax Incorporated (NYSE:OMX): Specialty Retail Industry. Market cap of $1.13B. SMA50 at $14.70 vs. SMA200 at $14.86 (current price at $13.23). Shares shorted have increased 22.45% month-over-month (from 9.62M to 11.78M). This is a risky stock that is significantly more volatile than the overall market (beta = 2.67). The stock is a short squeeze candidate, with a short float at 12.64% (equivalent to 5.22 days of average volume). The stock has lost 19.62% over the last year.

4. Scientific Games Corporation (NASDAQ:SGMS): Multimedia & Graphics Software Industry. Market cap of $838.86M. SMA50 at $9.43 vs. SMA200 at $9.58 (current price at $9.12). Shares shorted have increased 21.20% month-over-month (from 3.82M to 4.63M). Short float at 6.59% (equivalent to 5.07 days of average volume), implying the stock is a short squeeze candidate. The stock has had a couple of great days, gaining 8.44% over the last week.

5. Gerdau S.A. (NYSE:GGB): Steel & Iron Industry. Market cap of $19.11B. SMA50 at $13.38 vs. SMA200 at $13.63 (current price at $12.60). Shares shorted have increased 16.37% month-over-month (from 16.13M to 18.77M). GGB might be undervalued at current levels, with a PEG ratio at 0.63, and P/FCF ratio at 13.31. The stock has performed poorly over the last month, losing 10.06%.

6. Schweitzer-Mauduit International Inc. (NYSE:SWM): Paper & Paper Products Industry. Market cap of $921.73M. SMA50 at $55.15 vs. SMA200 at $57.11 (current price at $52.55). Shares shorted have increased 15.88% month-over-month (from 571.28K to 662.00K). The stock has had a couple of great days, gaining 10.61% over the last week.

7. Greenhill & Co., Inc. (NYSE:GHL):
Investment Brokerage Industry. Market cap of $1.90B. SMA50 at $70.55 vs. SMA200 at $72.97 (current price at $63.90). Shares shorted have increased 15.70% month-over-month (from 4.14M to 4.79M). Risk-averse investors may appreciate that GHL has a relatively low correlation to the market (beta = 0.77). The stock is a short squeeze candidate, with a short float at 16.04% (equivalent to 12.43 days of average volume). The stock has performed poorly over the last month, losing 10.27%.

8. The Marcus Corporation (NYSE:MCS):
Lodging Industry. Market cap of $331.67M. SMA50 at $11.83 vs. SMA200 at $12.01 (current price at $11.19). Shares shorted have increased 9.53% month-over-month (from 389.54K to 426.68K). The stock has performed poorly over the last month, losing 15.36%.

9. Alliant Techsystems Inc. (NYSE:ATK): Aerospace/Defense Products & Services Industry. Market cap of $2.40B. SMA50 at $71.32 vs. SMA200 at $71.60 (current price at $71.73). Shares shorted have increased 8.42% month-over-month (from 856.32K to 928.38K). The stock has lost 13.22% over the last year.

10. Pepsico, Inc. (NYSE:PEP):
Processed & Packaged Goods Industry. Market cap of $104.38B. SMA50 at $63.83 vs. SMA200 at $64.00 (current price at $65.22). Shares shorted have increased 6.99% month-over-month (from 7.58M to 8.11M). PEP has a relatively low correlation to the market (beta = 0.52), which may be appealing to risk-averse investors. The stock has gained 1.89% over the last year.

11. Ener1, Inc. (NASDAQ:HEV): Industrial Electrical Equipment Industry. Market cap of $486.37M. SMA50 at $3.53 vs. SMA200 at $3.65 (current price at $2.95). Shares shorted have increased 6.69% month-over-month (from 6.58M to 7.02M). The stock has performed poorly over the last month, losing 16.9%.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz. (Note: Current month for shares shorted data is month ended Feb. 28, 2011).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 11 Highly Shorted Stocks With Bearish Momentum Crossovers