A stock鈥檚 short interest is the percentage of outstanding shares that are sold short, and essentially serves as a sentiment indicator. A high short interest means Brewers 8 Braun Blue 2010 All Star Jerseys that many traders are placing bearish bets against the stock, while a low short interest indicates that investor sentiment is either bullish or neutral.
Additionally, a high short interest is frequently a predictor for volatility. When bad news emerges from the company, short sellers ferociously pound the stock lower. However, when good news is released, many short sellers are forced to sell their short position, which results in a short squeeze and a considerably higher share price.
Thus, stocks with high short interest are susceptible to dramatic up and down swings. Here are five notable stocks that are especially vulnerable to this kind of trading action.
Short Interest: 38.40 percent
SodaStream is the world leader home-carbonation products. Its popular devices allow consumers to carbonate and flavor their own soda, allowing users to save hundreds of soda cans per year, while enjoying tasty soda at a reasonable price.
The enormous short interest in SodaStream is a bit of a head scratcher. The company only commands a $1.46 billion market cap, trades at a 1.09 PEG ratio, and was recently the subject of takeover rumors from PepsiCo. SodaStream鈥檚 growth products are also fairly exciting, as the company has hinted at moving into the restaurant business via industrial-sized tap water carbonators. With a product that consumers love and solid growth potential, short sellers could be in trouble with a buyout or replication of May鈥檚 stellar earnings beat.
Short Interest: 35.80 percent
Following the rise of e-commerce and the demise of electronics retailers like RadioShack and Circuit City, video game retailer GameStop logically appeared next in line to undergo a secular collapse. This thesis, however, has been proven wrong over the last couple months, and short sellers have paid the price.
GameStop鈥檚 survival is the result of gaming policies from Microsoft (MSFT) and Sony (SNE), who announced this month that their respective consoles would not restrict the transfer of used games. This policy effectively keeps GameStop鈥檚 used games business in tact for at least the next several years. As a result, many shorts have been squeezed, sending the stock up almost 140 percent over the last year.
A huge short position, however, remains on the stock. GameStop now commands a lofty $5 billion market cap and is still in the consumer electronics retail business, a space that has been in secular decline for years.
Short Interest: 31.90 percent
With a multi-billion dollar market cap and huge quarterly losses, Tesla, a producer of electronic cars, was widely deemed 鈥渙vervalued鈥?in the months after it went public in 2010. It attracted a horde of short sellers, who insisted that the company was a 鈥渃ult,鈥?and did nothing to warrant its supposedly ridiculous valuation.
However, short sellers have been dead wrong about Tesla. The company posted a surprise profit in Q1 2013 and the Model S is being sold faster than it can be produced. The company also has a brilliant leader in Elon Mets 7 Jose Reyes Road Cool Base Grey 2010 All Star Jerseys Musk and has other vehicles in the pipeline. Consequently, short sellers have been burned in recent months, as Tesla is up 245 percent in the last six months and over 500 percent since it went public.
With all this said, many investors are still shorting Tesla. Over 30 percent of outstanding shares are short because many investors now perceive Tesla鈥檚 $12.4 billion market cap as even more ridiculous than its pre-IPO valuation. With so many traders short the stock, Tesla could be ripe for another squeeze if the company releases another game-changing model or delivers another blowout earnings report.
Research in Motion (BBRY)
Short Interest: 33 percent
Investor sentiment has never been more bearish towards Research in Motion, whose BlackBerry phones have become almost irrelevant in the smartphone market. With a minuscule market share compared to Apple (AAPL) and Android, Research in Motion shares are down over 90 percent in the last five years and 27 percent in the last month.
While the bulls can now make a value-oriented case for buying Research in Motion stock (it now sells for less than one-half 2012 sales, has a market cap of only $5.3 billion, and could be a takeover target), short sellers believe that the death of the BlackBerry is still unfolding. As a result, the company still has one of the highest short interests in the NASDAQ, as investors are starting to doubt whether BlackBerry has an effective turnaround strategy in place.
Short Interest: 39.50 percent
Once a popular destination for consumer electronics purchases, RadioShack鈥檚 business has been obliterated with the emergence Amazon, Apple stores, and other alternatives to purchasing gadgets and smartphones. Consequently, short sellers have pounded the stock since 2010 when it traded at over $23. Shares now sell for just $3.19.
The company has fallen from grace because it provides little value to customers, who are flocking to purchase gadgets from online and directly from producers. Unless RadioShack can reinvigorate its brand, the company will be gone several years from now.
at 2013/07/28 22:47:28+09 PASS:
DEAR AMY: I'm in my early 50s. For the past few years, I have been experiencing increasing bouts of road rage, especially driving home from work. When traffic's light, I'm happy and drive safely. But when the road's crowded and/or when I see dangerous moves or my personal peeves (failure to signal or to yield), my temper flares.
I think this started after my Saturn died and I ended up with a sportier car. I actually scream to let off steam, loudly enough that I think others can hear. Last week I found myself doing 75 mph in a 45-mph zone after a taxi sped up and tried to cut me off (he won the biggest jerk contest). When I get out of my car, the anger goes away.
I think pressure at work is stoking it. I'm ashamed of my behavior, but I haven't figured out how to stop. Reciting mantras (I will not get angry, I will not let others get the best of me) hasn't worked. Do you have any suggestions on how to calm down? Therapy is not an affordable option right now. Car Screamer
DEAR SCREAMER: Even though you say you can't afford therapy, a professional evaluation and a couple of sessions could do you a world of good before you hurt yourself or someone else. One reason road rage is so dangerous is because if you lash out at someone equally raging, the resulting combustion could hurt a Rockies 2 Tulowitzki blue 2010 All Star Jerseys lot of people.
I wonder if the mantras you are choosing might be triggering your rage by reminding you that you actually do get angry; you do let others get the best of you. For you, screaming might raise your temper and temperature and be the opposite of letting off steam.
In the short term, try to decompress from the office before you enter your car at the end of the day. Perhaps you could work out or take a yoga class, take a walk or Giants 55 Tim Lincecum Road Cool Base Grey 2010 All Star Jerseys simply have a snack and read your favorite section of the paper. Relaxing for as little as 15 minutes before entering your car should help.
You should practice mindfulness, breathing and meditation techniques during times when you typically experience small frustrations. Successfully deep-breathing (not screaming) your way through a minor traffic tie-up will give you the important experience of successful control. Listening to favorite podcasts or music in the car (not raging, noisy DJs) could keep you entertained enough that you'll be more lighthearted and in less of a hurry.
DEAR AMY: For a number of years, my family has been poorly treated by my cousin and her husband. This cousin is not on speaking terms with her two sisters, who have also experienced such maltreatment.
They now have a summer residence across the street from mine. They spy on the activities of my elderly mother, my brother and me. They will not acknowledge us but will go to neighbors and spread negative rumors about us. When their son was married, my mother received a letter dis-inviting us to the wedding! Not one person from our side of the family was invited.
This cousin's father passed away a number of months ago. My mother, brother and I sent flowers. Those, too, went unacknowledged. We invited them to 85th and 90th birthday parties for my mother. They did not RSVP and did not attend. We are very hurt by this behavior and seek your insight on how to deal with this stressful situation. Hurt in N.Y.
DEAR HURT: Your stress will diminish if you follow your cousin's lead and act as if she doesn't exist. Simply step off this roller coaster. Do not invite this couple to events don't ruminate on their behavior. You cannot seem to heal this relationship, so concentrate on the functional friend and family relationships in your life.
DEAR AMY: Like Torn, the nondrinking college student who feels pressured to party along with her friends, I don't drink and never have. The pressure to imbibe is considerable until other people adjust. I found that just holding an opaque cup with liquid in it seemed to get people off my case. Not Torn
DEAR NOT: Great suggestion.
(You can contact Amy Dickinson via email: askamytribune.com. You can also follow her on Twitter askingamy or like her on Facebook. Amy Dickinson's memoir, The Mighty Queens of Freeville: A Mother, a Daughter and the Town that Raised Them (Hyperion), is available in bookstores.)
at 2013/09/06 21:42:50+09 PASS:
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