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Looking for short squeeze ideas? To help you get started, we've identified a list of stocks being targeted by short sellers. All of the names listed below have seen an increase in the number of shares shorted over the last month, and all of them have short floats that are larger than 10 days of average trading volume.

In addition, all of these stocks have long histories of beating analyst earnings estimates, suggesting that investors may be underestimating their earnings potential.

What do you think? Are these companies worth a closer look? Let us know in the comment section below.


(Click to enlarge)

List sorted by average earnings surprise.

1. Greenhill & Co., Inc. (NYSE:GHL): Operates as an independent investment bank. Market cap at $996.47M, most recent closing price at $34.29.

In Jun 2011: Reported EPS at 0.69 vs. estimate at 0.33 (surprise of 109.1%). In Sep 2011: Reported EPS at 0.28 vs. estimate at 0.2 (surprise of 40%). In Dec 2011: Reported EPS at 0.67 vs. estimate at 0.61 (surprise of 9.8%). In Mar 2012: Reported 0.53 vs. estimate at 0.38 (surprise of 39.5%. [Average earnings surprise at 49.6%].

Shares shorted have increased from 4.35M to 4.94M over the last month, an increase which represents about 2.19% of the company's float of 26.98M shares. Days to cover ratio at 12.72 days.

2. Pacific Sunwear of California Inc. (NASDAQ:PSUN): Operates as a retailer rooted in the action sports, fashion, and music influences of the California lifestyle. Market cap at $94.79M, most recent closing price at $1.36.

In Jul 2011: Reported EPS at -0.18 vs. estimate at -0.24 (surprise of 25%). In Oct 2011: Reported EPS at -0.1 vs. estimate at -0.14 (surprise of 28.6%). In Jan 2012: Reported EPS at -0.19 vs. estimate at -0.22 (surprise of 13.6%). In Apr 2012: Reported -0.2 vs. estimate at -0.29 (surprise of 31%. [Average earnings surprise at 24.55%].

Shares shorted have increased from 7.10M to 7.67M over the last month, an increase which represents about 3.21% of the company's float of 17.75M shares. Days to cover ratio at 15.29 days.

3. Skullcandy, Inc. (NASDAQ:SKUL): Develops and distributes headphones and other audio accessories to retailers in the United States and to distributors in various countries worldwide. Market cap at $349.82M, most recent closing price at $12.80.

In Jun 2011: Reported EPS at 0.22 vs. estimate at 0.19 (surprise of 15.8%). In Sep 2011: Reported EPS at 0.17 vs. estimate at 0.14 (surprise of 21.4%). In Dec 2011: Reported EPS at 0.47 vs. estimate at 0.43 (surprise of 9.3%). In Mar 2012: Reported 0.05 vs. estimate at 0.04 (surprise of 25%. [Average earnings surprise at 17.88%].

Shares shorted have increased from 9.20M to 9.66M over the last month, an increase which represents about 3.05% of the company's float of 15.08M shares. Days to cover ratio at 17.5 days.

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

Source: Are These Companies Being Underestimated By Short Sellers?