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Just a few days ago, Bloomberg published info on the "Largest S&P 500 Short Interest as a Percentage of Float." This information is interesting because it shows what stocks shorts are perhaps being overly aggressive in. One potential problem for shorts is when too many people short the same stock. When a stock is shorted to the point where it becomes an overcrowded trade, it can spark panic buying (a short squeeze), which is a big risk for shorts. A small jump in price and/or some good news being released by the company can spark buying by shorts who want to cover their shorts and cut potential losses before other shorts. The past few weeks have been great for shorts in general as the market has declined, but the momentum almost always turns. Here are some companies that could be next to see a short squeeze:

Best Buy (NYSE:BBY) shares are trading at $24.93. Best Buy is a leading retailer of electronics and is based in Minnesota. The 50-day moving average is $25.95 and the 200-day moving average is $30.60. Earnings estimates for BBY are about $3.48 per share in 2011 and $3.70 for 2012 so the PE ratio is only about 8. The book value is stated at $15.23. Best Buy pays a dividend of 64 cents per share which is equivalent to a yield of 2.6%. The business model has challenges, as Amazon.com (NASDAQ:AMZN) and other online retailers continue to compete with Best Buy. However, the stock looks cheap, and it might be trying to bottom. According to the latest data, about 12% of the BBY float is short.

First Solar Inc. (NASDAQ:FSLR) shares trade for $76.88. The 50-day moving average is $102.94 and the 200-day moving average is $129.97. FSLR has earnings estimates of about $9.13 per share for 2011 and $10.95. This puts the P/E ratio at about 8. Book value is listed at $41.43 per share. Solar stocks have been declining rapidly, and the shorts have been right to short this sector, but there will be a bottom someday. According to the latest data, about 29% of the FSLR float is short.

Whirlpool Corp. (NYSE:WHR) shares are trading at $51.67. Whirlpool is a leading maker of appliances. The 50-day moving average is about $62.11 and the 200-day moving average is about $77.34. These shares have traded in a 52-week range between $50.92 and $92.28. Earnings estimates for WHR are about $11.90 per share in 2011 and $8.98 for 2012. These share have recently dropped below the 50- and 200-day moving averages when they announced that earnings for the 2nd quarter would be a loss of $2.10 per share, due to a legal settlement. WHR pays a dividend of $2 per share which is equivalent to a yield of 3.8%. According to the latest data, about 12% of the WHR float is short.

Supervalu (NYSE:SVU) shares are trading at $7.17. Supervalu is a leading grocery store company and is based in Minnesota. The 50-day moving average is about $7.75 and the 200-day moving average is about $8.59. Earnings estimates for SVU are $1.25 per share in 2011 and $1.29 for 2012, so the PE ratio is about 5 on these shares. Supervalu pays a dividend of about 35 cents per share, which is equivalent to a yield of 4.7%. According to the latest data, about 25% of the SVU float is short.

Diamond Offshore (NYSE:DO) shares are trading at $61.88. Diamond is an offshore drilling company. These shares have traded in a range between $56.40 to $81.19 in the last 52 weeks. The 50-day moving average is $63.85 and the 200-day moving average is $68.68. Earnings estimates indicate a profit of $6.05 per share for 2011 and $5.46 for 2012. Diamond pays a dividend of 50 cents per share. According to the latest data, about 17% of the DO float is short.

MEMC Electronic Materials (WFR) is trading at $6.78. MEMC is a maker of silicon wafers for semiconductor and solar use. These shares have a 52-week range of $4.96 and $15.04. The 50-day moving average is $6.88 and the 200-day moving average is $10.22. Estimates for WFR are about 88 cents per share in 2011. According to the latest data, about 11% of the WFR float is short.

Legg Mason, Inc., (NYSE:LM) is trading around $26.99. Legg Mason is a leading asset management company, based in Maryland. These shares have traded in a range between $24.11 to $37.82 in the last 52 weeks. The 50-day moving average is $28.11 and the 200-day moving average is $33. LM is estimated to earn about $1.81 per share in 2011 and $2.45 in 2012. LM pays a small dividend of 32 cents per share. According to the latest data, about 10% of the LM float is short.

PulteGroup, Inc. (NYSE:PHM) shares are trading at $4.58. PulteGroup is a leading home builder. The 50-day moving average is $5.27 and the 200-day moving average is $6.99. The shares are trading close to the stated book value of $5.49 per share. Earnings estimates indicate a loss for 2011 and small profit of about 19 cents for 2012. According to the latest data, about 11% of the PHM float is short.

Gannett Incorporated (NYSE:GCI) is trading around $9.43. Gannett owns several major newspapers and is based in Virginia. The 50-day moving average is $11.17 and the 200-day moving average is $14. These shares have traded in a range between $9.15 to $18.93 in the last 52 weeks. Earnings estimates for GCI are about $2.17 per share in 2011 and $2.28 for 2012. GCI pays a dividend of 32 cents per share, which is equivalent to a yield of 3.3%. According to the latest data, about 10% of the GCI float is short.

The data is sourced from Yahoo Finance.

Disclaimer: The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Source: 9 Stocks Positioned To Jump Higher In A Short Squeeze