With all this talk today about limiting "naked short selling" for FNM, FRE, and primary dealers (dismiss the fact that it is already illegal to do for all stocks, making it ironic that the SEC is only now going to focus on a few), below we highlight S&P 1500 stocks that have been on the "Threshold Securities" list for the most consecutive days.
These stocks have ongoing failure to deliver problems, meaning short sellers are most likely not officially borrowing (naked shorting) them before going short. As shown, Chipotle (CMG) has been on the list the most consecutive days at 457. CMG is followed by Corus Bankshares (CORS), Cree (CREE), La-Z-Boy (LZB) and and Meritage Homes (MTH).
If the focus on naked shorting continues to pick up steam, these stocks could see some serious short covering action (many are already doing very well today).
