Sunday, October 14, 2012

S&P 1500 Stocks With the Highest Short Interest

The table below highlights the 25 stocks in the S&P 1500 with the highest short interest as a percentage of float. Perhaps the most noteworthy aspect of the list is that even though Consumer Discretionary stocks have been among the market's top performers, nearly half of the stocks on the list are from this sector. The next closest sector is Technology with four stocks.

While the large number of Discretionary stocks on the list could be interpreted by some as a negative signal for the sector, we would note that it is not uncommon for Consumer Discretionary stocks to be at the top of the list of most shorted stocks. One partial reason this is the case is that you often see stocks in the Consumer Discretionary sector have big run-ups in sales due to a hot seasonal style or fad, and then once the public grows tired of the trend, the sales dry up and the stock reverts back to its prior levels. (Click chart to expand.)

No comments:

Post a Comment