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If you're looking for small cap ideas that may be set for a rebound, the following list might offer an interesting starting point. To create this list, we started with a universe of about 200 stocks with market caps between $100M-300M. We then collected data on short trades, and identified the 15 names that have seen the most significant short covering over the last month, as measured relative to the company's total float.

We also created a price-weighted return index of all the stocks mentioned below. As the chart illustrates, these stocks, as a group, underperformed the rest of the market over the last month. To access a complete analysis of the list's recent performance, click here.

Short sellers seem to think at least some of the bad news has already been priced into these names. Do you agree? Full details below.

1. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA): Biotechnology Industry. Market cap of $154.19M. Shares shorted changed from 28.11M to 13.79M over the last month, a decrease that represents about 12.86% of the company's float of 111.34M shares.

2. Hovnanian Enterprises Inc. (NYSE:HOV): Residential Construction Industry. Market cap of $187.1M. Shares shorted changed from 18.37M to 17.09M over the last month, a decrease that represents about 1.94% of the company's float of 65.81M shares.

3. Beazer Homes USA Inc. (NYSE:BZH): Residential Construction Industry. Market cap of $276.57M. Shares shorted changed from 14.77M to 13.67M over the last month, a decrease that represents about 1.77% of the company's float of 62.09M shares.

4. Yongye International, Inc. (NASDAQ:YONG): Agricultural Chemicals Industry. Market cap of $230.56M. Shares shorted changed from 7.63M to 6.97M over the last month, a decrease that represents about 1.76% of the company's float of 37.47M shares.

5. China New Borun Corporation (NYSE:BORN): Brewers Industry. Market cap of $258.59M. Shares shorted changed from 1.43M to 1.34M over the last month, a decrease that represents about 1.57% of the company's float of 5.73M shares.

6. Mindspeed Technologies Inc. (NASDAQ:MSPD): Semiconductor Equipment & Materials Industry. Market cap of $291.7M. Shares shorted changed from 3.47M to 3.00M over the last month, a decrease that represents about 1.56% of the company's float of 30.12M shares.

7. Xenoport, Inc. (NASDAQ:XNPT): Biotechnology Industry. Market cap of $261.68M. Shares shorted changed from 3.53M to 3.11M over the last month, a decrease that represents about 1.43% of the company's float of 29.31M shares.

8. The KEYW Holding Corporation (NASDAQ:KEYW): Security Software & Services Industry. Market cap of $278.47M. Shares shorted changed from 1.59M to 1.34M over the last month, a decrease that represents about 1.23% of the company's float of 20.37M shares.

9. China Green Agriculture, Inc. (NYSE:CGA): Agricultural Chemicals Industry. Market cap of $174.53M. Shares shorted changed from 3.42M to 3.27M over the last month, a decrease that represents about 0.89% of the company's float of 16.85M shares.

10. Allos Therapeutics, Inc. (NASDAQ:ALTH): Drug Manufacturer. Market cap of $261.91M. Shares shorted changed from 8.31M to 7.73M over the last month, a decrease that represents about 0.81% of the company's float of 71.44M shares.

11. AEterna Zentaris Inc. (NASDAQ:AEZS): Biotechnology Industry. Market cap of $178.77M. Shares shorted changed from 5.93M to 5.29M over the last month, a decrease that represents about 0.75% of the company's float of 84.84M shares.

12. Openwave Systems Inc. (OPWV): Application Software Industry. Market cap of $195.15M. Shares shorted changed from 3.18M to 2.74M over the last month, a decrease that represents about 0.62% of the company's float of 71.22M shares.

13. Center Financial Corporation (NASDAQ:CLFC): Savings & Loans Industry. Market cap of $269.79M. Shares shorted changed from 1.22M to 1.00M over the last month, a decrease that represents about 0.62% of the company's float of 35.41M shares.

14. RAIT Financial Trust (NYSE:RAS): REIT. Market cap of $245.29M. Shares shorted changed from 13.94M to 13.27M over the last month, a decrease that represents about 0.61% of the company's float of 109.66M shares.

15. PMI Group Inc. (PMI): Surety & Title Insurance Industry. Market cap of $277.88M. Shares shorted changed from 30.33M to 29.39M over the last month, a decrease that represents about 0.6% of the company's float of 157.46M shares.

Short data collected from Yahoo Finance.

Source: 15 Micro-Cap Stocks With Significant Short Covering