3 Small Caps Trading Near Highs With Bearish Short Trends

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 |  Includes: ARNA, CAA, LL
by: Kapitall

Do you like to follow smart money buying and selling trends? One group of smart money investors is short sellers, who sell shares of a company short when they expect the price to fall. For a look at stocks with currently bearish sentiment from short sellers, we ran a screen.

We began by screening for stocks with strong upward momentum, trading within 5% of their 52-week highs.

We then screened these names for those with bearish sentiment from short sellers, with significant increases in shares shorted month-over-month representing at least 2% of share float. This indicates that short sellers are more bearish on these names than they were a month ago.

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

Do you think these stocks are in hot water, despite their recent performance? Use this list as a starting point for your own analysis.

List sorted by increase in shares shorted month-over-month as a percent of share float.

1. Standard Pacific Corp. (SPF): Operates as a diversified builder of single-family attached and detached homes in the United States. Market cap at $1.11B, most recent closing price at $5.58. The stock is currently trading 1.95% below its 52-week high. Shares shorted have increased from 31.89M to 36.18M over the last month, an increase which represents about 4.22% of the company's float of 101.58M shares. Days to cover ratio at 9.61 days.

2. Lumber Liquidators Holdings, Inc. (NYSE:LL): Operates as a specialty retailer of hardwood flooring in the United States. Market cap at $795.89M, most recent closing price at $28.91. The stock is currently trading 4.00% below its 52-week high. Shares shorted have increased from 5.63M to 6.34M over the last month, an increase which represents about 3.27% of the company's float of 21.69M shares. Days to cover ratio at 10.58 days.

3. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA): Focuses on discovering, developing, and commercializing oral drugs in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Market cap at $1.16B, most recent closing price at $6.36. The stock is currently trading 4.56% below its 52-week high. Shares shorted have increased from 37.44M to 42.37M over the last month, an increase which represents about 2.72% of the company's float of 181.33M shares. Days to cover ratio at 3.45 days.

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

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