Short Ideas: 7 U.S. Stocks Reaching New Highs As Mutual Funds Exit Their Positions

By
A A A

If you like to follow the crowds and think this market is about to top, this may be the perfect place for you to find some potential stocks to sell short.

To compile this list we focused on stocks with the following characteristics:

-       U.S. companies with market cap above $300M

-       Traded at its 52-week high during recent sessions

-       Experienced significant mutual fund selling over the current quarter

Mutual funds think these rallying names ran out of fuel, do you agree?

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by mutual fund flows as a percentage of floating shares.

1. Charter Communications Inc. (CHTR): CATV Systems Industry. Market cap of $6.43B. On a net basis, mutual funds sold 10.7M shares over the current quarter. This is equivalent to 10.34% of the outstanding shares. Exhibiting strong upside momentum--currently trading 7.18% above its SMA20, 15.78% above its SMA50, and 45.96% above its SMA200. The stock has had a good month, gaining 14.04%.

2. RPC Inc. (RES): Oil & Gas Equipment & Services Industry. Market cap of $3.88B. On a net basis, mutual funds sold 2.8M shares over the current quarter. This is equivalent to 6.61% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 27.3% (equivalent to 7.17 days of average volume). Exhibiting strong upside momentum--currently trading 10.1% above its SMA20, 22.04% above its SMA50, and 58.47% above its SMA200. The stock has gained 190.15% over the last year.

3. Ryder System, Inc. (R): Rental & Leasing Services Industry. Market cap of $2.77B. On a net basis, mutual funds sold 2.6M shares over the current quarter. This is equivalent to 5.18% of the outstanding shares. The stock has had a couple of great days, gaining 7.44% over the last week.

4. WABCO Holdings Inc. (WBC): Auto Parts Industry. Market cap of $4.84B. On a net basis, mutual funds sold 2.9M shares over the current quarter. This is equivalent to 4.36% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.07). Exhibiting strong upside momentum--currently trading 14.56% above its SMA20, 18.88% above its SMA50, and 42.42% above its SMA200. The stock has had a couple of great days, gaining 18.05% over the last week.

5. Federal Realty Investment Trust (FRT): REIT - Retail Industry. Market cap of $5.36B. On a net basis, mutual funds sold 2.3M shares over the current quarter. This is equivalent to 3.76% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 5.62% (equivalent to 8.16 days of average volume). The stock has gained 17.07% over the last year.

6. Pitney Bowes Inc. (PBI): Business Equipment Industry. Market cap of $5.33B. On a net basis, mutual funds sold 6.4M shares over the current quarter. This is equivalent to 3.15% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 7.86% (equivalent to 7.45 days of average volume). The stock has gained 8.68% over the last year.

7. Key Energy Services Inc. (KEG): Oil & Gas Drilling & Exploration Industry. Market cap of $2.32B. On a net basis, mutual funds sold 4.4M shares over the current quarter. This is equivalent to 3.13% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.27). The stock is a short squeeze candidate, with a short float at 9.03% (equivalent to 5.3 days of average volume). The stock has had a couple of great days, gaining 5.92% over the last week.

Institutional flows sourced from Fidelity, other relevant data sourced from Finviz. Data gathered on April 28th. 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: CHTR , FRT , KEG , PBI , R , RES , WBC

Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

Most Active by Volume

91,252,153
  • $13.78 ▼ 4.31%
68,133,496
  • $12.93 ▲ 6.77%
57,268,074
  • $46.13 ▲ 2.47%
43,432,023
  • $105.22 ▲ 0.37%
40,880,685
  • $13.46 ▲ 8.90%
40,712,405
  • $98.62 ▲ 0.82%
39,776,976
  • $16.72 ▲ 0.72%
34,688,871
  • $11.16 ▲ 3.05%
As of 10/24/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com