3 Outperforming Tech Stocks With Bearish Short Trends

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 |  Includes: CTRX, FRP, TWER
by: Kapitall

Do you like to follow smart money buying and selling trends? For a closer look at stocks that are seeing some bearish sentiment from short sellers, we ran a screen.

We began by screening the tech sector for stocks that have outperformed the market over the last quarter, with over 20% quarterly return.

We then screened 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.

Do you think these stocks are in trouble? Use this list as a starting point for your own analysis.

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

1. SXC Health Solutions, Corp. (SXCI): Provides pharmacy benefit management services and healthcare information technology solutions to the healthcare benefits management industry in North America. Market cap at $6.23B, most recent closing price at $90.44. Performance over the last quarter at 34.26%. Shares shorted have increased from 750.54K to 4.80M over the last month, an increase which represents about 6.37% of the company's float of 63.60M shares. Days to cover ratio at 4.96 days.

2. Towerstream Corporation (NASDAQ:TWER): A 4G service provider, delivers high-speed wireless Internet access to businesses in the United States. Market cap at $186.56M, most recent closing price at $3.43. Performance over the last quarter at 24.28%. Shares shorted have increased from 4.38M to 6.49M over the last month, an increase which represents about 4.63% of the company's float of 45.56M shares. Days to cover ratio at 7.54 days.

3. Fairpoint Communications, Inc. (NASDAQ:FRP): Provides communication services to residential and business customers in rural and small urban communities primarily in northern New England. Market cap at $146.98M, most recent closing price at $5.61. Performance over the last quarter at 28.97%. Shares shorted have increased from 4.31M to 4.62M over the last month, an increase which represents about 2.71% of the company's float of 11.45M shares. Days to cover ratio at 22.32 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.