Bruce Krasting

Stocks with the Highest Short Interest

This is nice data but there is something missing. What is the borrow cost of being short? Just because there is a big short interest does not mean the stock is going down (or up). There is no public info on the borrow cost. It is a very important part of the equation when looking at this stuff. For example the borrow cost of Sears was 36% per annum recently. You do not want to short that one unless your time frame is very short. If you are looking for a short name check with your broker as to the cost of borrowing. If it is a big number then caveat emptor.