Top 17 Technology Stocks With Declining Short Interest

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Includes: AMAT, BBRY, CA, CRM, DVMT, GOOG, HPQ, INTC, KLAC, LNKD, MCHP, MU, NOK, NVDA, PAYX, WDC, WU
by: Insider Monkey

Because of the recent economic turmoil, most investors are bearish about the market, thus some of them are betting against the stocks by increasing their short positions. But there are still a few stocks that experienced decreasing short interest, indicating that the majority of the investors are increasingly optimistic about these stocks.

Below, we compiled a list of technology stocks with declining short interest. The market data are sourced from Fidelity. All companies in this list have at least 1% open interest and the open short interest declined over the past month. These stocks are in IT sector and have at least $6 Billion in market cap.

Company Name

Symbol

Open Interest %

Change in Short Interest %

Return since June %

MOTOROLA MOBILITY

MMI

2.30%

-60.11%

70.46%

SANDISK CORP

SNDK

2.85%

-32.66%

-1.33%

PAYCHEX INC.

PAYX

2.51%

-15.81%

-13.56%

INTEL CORP

INTC

2.94%

-10.94%

-5.42%

LINKEDIN CORP

LNKD

2.32%

-10.08%

-3.01%

KLA-TENCOR CORP

KLAC

4.25%

-7.34%

-5.91%

HEWLETT-PACKARD

HPQ

1.15%

-6.39%

-37.31%

CA INC

CA

3.41%

-6.37%

-10.76%

EMC CORP

EMC

3.64%

-5.81%

-20.62%

NOKIA CORP

NOK

2.49%

-5.79%

-8.57%

RESEARCH IN MOTION

RIMM

7.11%

-5.39%

4.44%

SALESFORCE.COM

CRM

6.80%

-3.28%

-15.04%

WESTERN UNION CO

WU

2.30%

-3.15%

-19.97%

NVIDIA CORP

NVDA

3.32%

-2.18%

-8.85%

APPLIED MATERIALS

AMAT

1.78%

-1.41%

-14.71%

MICRON

MU

6.53%

-0.73%

-8.29%

MICROCHIP TECH

MCHP

11.03%

-0.36%

-10.32%

These 17 stocks have an average return of -6.40% vs. -10.78% for SPY since the end of June. One of these stocks, MMI, performed extremely well: it returned 70.46% during the period. If this outlier is taken out, the rest 16 stocks lost -11.20% on average in the same period.

Here are the top 10 technology stocks with declining short interest:

Motorola Mobility Holdings Inc.: Motorola Mobility Holdings provides technologies, products and services that enable a range of mobile and wire line digital communication, information and entertainment experiences. MMI has an open interest of 2.30% and its short interest declined by 60.11% last month. MMI has a market cap of $11.19B and it gained 70.46% since the end of June. Google is acquiring the company at a huge premium. Carl Icahn holds the largest position in MMI (check out Icahn’s top stock picks).

SanDisk Corp.: SanDisk designs, develops and manufactures data storage solutions in a range of form factors using the flash memory, controller and firmware technologies. SNDK has an open interest of 2.85% and its short interest declined by 32.66% last month. SNDK has a market cap of $10.12B, a P/E ratio of 7.99 and it lost 1.33% since the end of June. John Griffin holds the largest position in SNDK.

Paychex Inc.: Paychex provides payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses. PAYX has an open interest of 2.51% and its short interest declined by 15.81% last month. PAXY has a market cap of $9.52B, a P/E ratio of 18.49 and it lost 13.56% since the end of June. David Blood, Miguel Nogales, and former vice-president Al Gore hold the largest position in PAXY (check out Al Gore’s top stock picks).

Intel Corp.: Intel is a semiconductor chip maker company. INTC has an open interest of 2.94% and its short interest declined by 10.94% last month. INTC has a market cap of $109.98B, a P/E ratio of 9.59 and it lost 5.42% since the end of June. Paul Ruddock and Steve Heinz’s Lansdowne holds the largest position in INTC.

LinkedIn Corp.: LinkedIn is a professional network on the Internet with more than 90 million members in over 200 countries and territories. LNKD has an open interest of 2.32% and its short interest declined by 10.08% last month. LNKD has a market cap of $8.56B, a P/E ratio of 1,267.54 and it lost 3.01% since the end of June.

Kla-Tencor Corp.: KLA-Tencor designs, manufactures and markets process control and yield management solutions for the semiconductor and related nano electronics industries. KLAC has an open interest of 4.25% and its short interest declined by 7.34% last month. KLAC has a market cap of $6.42B, a P/E ratio of 8.25 and it lost 5.91% since the end of June. Jean-Marie Eveillard holds the biggest position in KLAC.

Hewlett-Packard Co.: Hewlett-Packard provides products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors. HPQ has an open interest of 1.15% and its short interest declined by 6.39% last month. HPQ has a market cap of $47.39B, a P/E ratio of 5.37 and it lost 37.31% since the end of June. John Paulson holds the biggest position in HPQ (check out Paulson’s favorite stock picks).

CA Inc.: CA Inc is engaged in the design, development, marketing, licensing and support of IT management software products that operate on a wide range of hardware platforms and operating systems. CA has an open interest of 3.41% and its short interest declined by 6.37% last month. CA has a market cap of $10.41B, a P/E ratio of 12.72 and it lost 10.76% since the end of June. Frank Brosens holds the biggest position in CA.

EMC Corp.: EMC develops, delivers and supports the IT industry’s range of information infrastructure and virtual infrastructure technologies, solutions and services. EMC has an open interest of 3.64% and its short interest declined by 5.81% last month. EMC has a market cap of $45.72B, a P/E ratio of 23.22 and it lost 20.62% since the end of June. Ken Fisher holds the biggest position in EMC (check out Fisher’s favorite stock picks).

Nokia Corp.: Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services. NOK has an open interest of 2.49% and its short interest declined by 5.79% last month. NOK has a market cap of $22.95B, a P/E ratio of 13.13 and it lost 8.57% since the end of June. Rob Citrone holds the biggest position in NOK.

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