Top 15 Management Teams Squeezing Out Short Sellers

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Includes: BKE, CACC, CBPO, CMG, CTCM, DEER, DLB, ESI, FINL, LSTR, MELI, MIPS, NFLX, QSII, SYNA
by: Kapitall

The following is a list of companies with excellent management teams--judged by trends in the return on assets [ROA] and return on equity [ROE] ratios over the last twelve months.

All of the companies mentioned below have seen trailing twelve month [TTM] ROE and ROA accelerate faster than the prior TTM period. In addition, all of the companies below have TTM ROA and ROE values above 10%.

To further refine the quality of the list, we had a look at short seller activity, and identified the set of stocks that have seen the most significant short covering over the last month.

Short sellers seem to think the upside potential of these stocks outweigh the downside--do you agree? Use the list below as a starting point for your own analysis1. MIPS Technologies, Inc. (NASDAQ:MIPS): Shares shorted at the end of the most recent month at 4.81M vs. shares shorted at the end of the previous month at 6.59M (a change that is equivalent to 3.41% of the company's float of 52.17M shares). TTM ROA at 23.68% vs. prior TTM ROA at 10.18%. TTM ROE at 32.28% vs. prior TTM ROE at 24.2%.

2. ITT Educational Services, Inc. (NYSE:ESI): Shares shorted at the end of the most recent month at 7.38M vs. shares shorted at the end of the previous month at 7.88M (a change that is equivalent to 2.24% of the company's float of 22.29M shares). TTM ROA at 53.97% vs. prior TTM ROA at 50.2%. TTM ROE at 315.37% vs. prior TTM ROE at 192.31%.

3. Quality Systems, Inc. (NASDAQ:QSII): Shares shorted at the end of the most recent month at 3.94M vs. shares shorted at the end of the previous month at 4.33M (a change that is equivalent to 2.01% of the company's float of 19.41M shares). TTM ROA at 17.89% vs. prior TTM ROA at 17.52%. TTM ROE at 29.84% vs. prior TTM ROE at 28.14%.

4. Netflix, Inc. (NASDAQ:NFLX): Shares shorted at the end of the most recent month at 10.41M vs. shares shorted at the end of the previous month at 11.26M (a change that is equivalent to 1.66% of the company's float of 51.06M shares). TTM ROA at 21.72% vs. prior TTM ROA at 19.7%. TTM ROE at 89.39% vs. prior TTM ROE at 51.02%.

5. Deer Consumer Products, Inc. (NASDAQ:DEER):
Shares shorted at the end of the most recent month at 2.74M vs. shares shorted at the end of the previous month at 3.03M (a change that is equivalent to 1.64% of the company's float of 17.67M shares). TTM ROA at 20.09% vs. prior TTM ROA at 18.07%. TTM ROE at 24.45% vs. prior TTM ROE at 24.26%.

6. The Buckle, Inc. (NYSE:BKE): Shares shorted at the end of the most recent month at 4.63M vs. shares shorted at the end of the previous month at 5.03M (a change that is equivalent to 1.51% of the company's float of 26.43M shares). TTM ROA at 26.97% vs. prior TTM ROA at 26.23%. TTM ROE at 36.76% vs. prior TTM ROE at 35.55%.

7. Credit Acceptance Corp. (NASDAQ:CACC): Shares shorted at the end of the most recent month at 250.13K vs. shares shorted at the end of the previous month at 270.84K (a change that is equivalent to 1.42% of the company's float of 1.46M shares). TTM ROA at 13.33% vs. prior TTM ROA at 12.4%. TTM ROE at 39.15% vs. prior TTM ROE at 33.15%.

8. Chipotle Mexican Grill, Inc. (NYSE:CMG):
Shares shorted at the end of the most recent month at 3.20M vs. shares shorted at the end of the previous month at 3.62M (a change that is equivalent to 1.37% of the company's float of 30.59M shares). TTM ROA at 17.44% vs. prior TTM ROA at 15.08%. TTM ROE at 23.48% vs. prior TTM ROE at 20.38%.

9. China Biologic Products Inc (NASDAQ:CBPO)
: Shares shorted at the end of the most recent month at 1.13M vs. shares shorted at the end of the previous month at 1.20M (a change that is equivalent to 1.11% of the company's float of 6.31M shares). TTM ROA at 23.69% vs. prior TTM ROA at 16.83%. TTM ROE at 32.1% vs. prior TTM ROE at 16.18%.

10. CTC Media, Inc. (NASDAQ:CTCM): Shares shorted at the end of the most recent month at 1.04M vs. shares shorted at the end of the previous month at 1.67M (a change that is equivalent to 1.1% of the company's float of 57.51M shares). TTM ROA at 15.63% vs. prior TTM ROA at 13.5%. TTM ROE at 18.34% vs. prior TTM ROE at 16.93%.

11. The Finish Line, Inc. (NASDAQ:FINL): Shares shorted at the end of the most recent month at 4.76M vs. shares shorted at the end of the previous month at 5.33M (a change that is equivalent to 1.09% of the company's float of 52.25M shares). TTM ROA at 11.23% vs. prior TTM ROA at 10.46%. TTM ROE at 14.58% vs. prior TTM ROE at 14.02%.

12. Dolby Laboratories, Inc. (NYSE:DLB): Shares shorted at the end of the most recent month at 2.62M vs. shares shorted at the end of the previous month at 3.16M (a change that is equivalent to 1.02% of the company's float of 52.81M shares). TTM ROA at 16.81% vs. prior TTM ROA at 16.14%. TTM ROE at 19.34% vs. prior TTM ROE at 18.92%.

13. MercadoLibre, Inc. (NASDAQ:MELI): Shares shorted at the end of the most recent month at 3.12M vs. shares shorted at the end of the previous month at 3.39M (a change that is equivalent to 0.99% of the company's float of 27.18M shares). TTM ROA at 25.24% vs. prior TTM ROA at 21.2%. TTM ROE at 39.47% vs. prior TTM ROE at 34.22%.

14. Landstar System, Inc. (NASDAQ:LSTR): Shares shorted at the end of the most recent month at 1.54M vs. shares shorted at the end of the previous month at 2.00M (a change that is equivalent to 0.97% of the company's float of 47.52M shares). TTM ROA at 12.88% vs. prior TTM ROA at 11.21%. TTM ROE at 33.54% vs. prior TTM ROE at 27.55%.

15. Synaptics, Incorporated (NASDAQ:SYNA): Shares shorted at the end of the most recent month at 9.12M vs. shares shorted at the end of the previous month at 9.43M (a change that is equivalent to 0.91% of the company's float of 33.96M shares). TTM ROA at 16.85% vs. prior TTM ROA at 13.42%. TTM ROE at 23.18% vs. prior TTM ROE at 20.83%.

*Management data sourced from Screener.co, short sales data sourced from Yahoo Finance.

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