By Robbie Citrino for Kapitall.
Short selling is the process by which investors are allowed to
make bearish bets-that is, bets based on the belief that the
market or a particular security will go down. It's not unlike
taking out a loan, except instead of borrowing money you borrow
You then sell the equity and buy it back later at a cheaper
price, pocketing the difference.
Float short, or shorted interest, is the percentage of shares
not held within the company that have been shorted by investors.
Having a large percentage of shares shorted usually indicates that
investors believe the stock is riskier than most and that many are
betting on its downfall. We decided to look for some blockbuster
names with a large amounts of short interst.
3D Systems (
gained fame in late 2013 after jumping 100% in a little over two
months. The company quickly revealed that it could not keep up with
the Street's ambitious revenue projections and investors reacted
sharply, halving its market cap in a matter of weeks. Still wary,
investors are shorting 34% of the float even though the stock is
trading near its 52-week lows.
share price in half over the past year in a steady decline,
investors remain bearish as 33% of the clothing company's shares
are currently being shorted. The poor sentiment around Lululemon
stems mainly from the ex-CEO's tasteless comments and eventual
ousting, in addition to product recalls and disappointing same
store sales growth.
Blackberry Ltd (
, known mainly for the downfall of its Blackberry mobile phone, is
in talks to separate and sell the more valuable parts of the
near-bankrupt company. Therefore it is no wonder that almost
32% of its float remains shorted.
Finally, investor darling
Tesla Motors (
, which has seen impressive growth in the past couple of years,
still makes shareholders nervous after its 400% increase from two
years ago as 26.5% of its shares are being shorted by the
With investors banking on a nosedive can these stocks work their
way back into shareholders' hearts?
Click on the interactive chart to view data over
1. Tesla Motors, Inc.
): Designs, develops, manufactures, and sells electric vehicles and
advanced electric vehicle powertrain components. Market cap at
$25.55B, most recent closing price at $204.94.
Shares shorted: 26%
2. 3D Systems Corp.
): Engages in the design, development, manufacture, marketing, and
servicing of 3D printers and related products, print materials, and
services. Market cap at $5.15B, most recent closing price at
Shares shorted: 34%
3. Lululemon Athletica Inc.
): Engages in the design, manufacture, and distribution of athletic
apparel and accessories for women, men, and female youth primarily
in Canada, the United States, and Australia. Market cap at $6.27B,
most recent closing price at $43.27.
Shares shorted: 33%
4. BlackBerry Limited
): Provides wireless communications solutions
worldwide. Market cap at $4.02B, most recent closing price at
Shares shorted: 32%
(List compiled by Robbie Citrino. Monthly returns sourced
from Zacks Investment Research. All other data souced from
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