Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

There are many sources to find out what analysts or traders predict the direction of stocks to be, but one of the most interesting is shares shorted.

Shorting a share indicates a specific prediction that the stock’s price will soon fall, and because shorting requires significant amounts of borrowing, short sellers are given background checks to trade and are generally considered “smart money” investors.

We ran a screen on US-traded stocks of Chinese companies for those seeing bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 (NYSEARCA:SPY) index over the last month.

(Click chart for more detail)

Do you think these stocks will outperform like short sellers anticipate? Use this list as a starting point for your own analysis.

List sorted by decrease in shares shorted as a percent of share float.

1. Lihua International, Inc. (NASDAQ:LIWA): Engages in the production of copper replacement cable and wire products in the People's Republic of China. Market cap of $149.25M. Shares shorted have decreased from 2.57M to 2.52M month-over-month, a change representing 22.73% of the company's 219.99K share float. The stock is a short squeeze candidate, with a short float at 15.76% (equivalent to 14.66 days of average volume). It's been a rough couple of days for the stock, losing 7.1% over the last week.

2. E-Commerce China Dangdang Inc. (NYSE:DANG): Operates as a business-to-consumer e-commerce company in the People's Republic of China. Market cap of $369.40M. Shares shorted have decreased from 9.25M to 7.05M month-over-month, a change representing 7.90% of the company's 27.85M share float. The stock has performed poorly over the last month, losing 15.58%.

3. Cninsure Inc. (NASDAQ:CISG): Provides insurance brokerage and agency services, and insurance claims adjusting services in the People's Republic of China. Market cap of $347.61M. Shares shorted have decreased from 6.04M to 4.58M month-over-month, a change representing 5.52% of the company's 26.47M share float. The stock is a short squeeze candidate, with a short float at 9.15% (equivalent to 9.21 days of average volume). The stock has performed poorly over the last month, losing 13.38%.

4. China Mass Media Corp. (NYSE:CMM): Advertising Agencies Industry. Market cap of $579.25M. Shares shorted have decreased from 40.63K to 3.50K month-over-month, a change representing 5.41% of the company's 686.68K share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.01). It's been a rough couple of days for the stock, losing 5.53% over the last week.

5. JinkoSolar Holding Co., Ltd. (NYSE:JKS): Engages in the manufacture and sale of solar power products in China and internationally. Market cap of $117.99M. Shares shorted have decreased from 6.04M to 5.76M month-over-month, a change representing 2.31% of the company's 12.11M share float. The stock is a short squeeze candidate, with a short float at 26.33% (equivalent to 6.49 days of average volume). It's been a rough couple of days for the stock, losing 10.23% over the last week.

6. Sina Corp. (NASDAQ:SINA): Provides online media and mobile value-added services (MVAS) in the People's Republic of China. Market cap of $3.76B. Shares shorted have decreased from 6.52M to 5.22M month-over-month, a change representing 1.98% of the company's 65.75M share float. It's been a rough couple of days for the stock, losing 9.1% over the last week.

7. eLong Inc. (NASDAQ:LONG): Operates as an online travel service provider in the People's Republic of China. Market cap of $465.63M. Shares shorted have decreased from 85.10K to 53.40K month-over-month, a change representing 1.84% of the company's 1.72M share float. The stock has had a good month, gaining 10.24%.

8. Hollysys Automation Technologies, Ltd (NASDAQ:HOLI): Provides automation and control technology and applications in the People's Republic of China. Market cap of $428.89M. Shares shorted have decreased from 5.57M to 5.00M month-over-month, a change representing 1.76% of the company's 32.36M share float. The stock is a short squeeze candidate, with a short float at 17.1% (equivalent to 20.65 days of average volume). It's been a rough couple of days for the stock, losing 6.89% over the last week.

9. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Provides telecommunications software solutions and information technology (NYSE:IT) products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $576.24M. Shares shorted have decreased from 9.31M to 8.56M month-over-month, a change representing 1.72% of the company's 43.50M share float. The stock is a short squeeze candidate, with a short float at 25.47% (equivalent to 10.2 days of average volume). It's been a rough couple of days for the stock, losing 8.25% over the last week.

10. Changyou.com Limited (NASDAQ:CYOU): Develops and operates online games in the People's Republic of China. Market cap of $1.21B. Shares shorted have decreased from 549.43K to 414.53K month-over-month, a change representing 1.34% of the company's 10.04M share float. It's been a rough couple of days for the stock, losing 9.49% over the last week.

11. Isoftstone Holdings Limited (NYSE:ISS): Provides various information technology (IT) services and solutions in the Greater China and internationally. Market cap of $469.95M. Shares shorted have decreased from 3.71M to 3.33M month-over-month, a change representing 1.28% of the company's 29.61M share float. The stock is a short squeeze candidate, with a short float at 8.92% (equivalent to 15.08 days of average volume). It's been a rough couple of days for the stock, losing 6.42% over the last week.

12. NetEase.com, Inc. (NASDAQ:NTES): Engages in the development of applications, services, and other technologies for the Internet in China. Market cap of $6.16B. Shares shorted have decreased from 1.49M to 800.17K month-over-month, a change representing 1.06% of the company's 65.32M share float. The stock has gained 25.03% over the last year.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 12 Chinese Stocks With Bullish Short Trends