The results are in.
Here are the top 10 shorted stocks for the month of February.
Short interest is represented as a percentage of float. If you
thought a market that doesn't want to fall would cause the shorts
to pile in as they wait for the pullback, there is no evidence of
that just yet. Overall, the S&P 500 saw a modest decrease in
10) Lennar (NYSE:
) - 19.36 percent - Number 10 on the list is a homebuilder. Given
the market consensus that the housing market is on the rebound
analysts are looking for EPS of $0.16 and $895 million in
revenue. That's year over year growth of 100 percent and 23
9) Hasbro (NASDAQ:
) - 20.14 percent - Keybanc cut the stock from a "Buy" to a
"Hold" Wednesday citing its rich valuation. That was good for a
nearly 2 percent decline but the stock has since regained
8) Cliffs Natural Resources (NYSE:
) - 20.41 percent - The stock was down more than 4 percent
Thursday after the company earlier announced the idling of a
pellet plant. The stock has lost more than 41 percent of its
value this year.
7) Frontier Communications (NASDAQ:
) - 22.94 percent - Frontier has a 9.8 percent yield but shorts
are waiting for the day when the dividend is cut. If it happens,
their patience will likely be rewarded.
6) United States Steel (NYSE:
) - 25.81 percent - If you understand what's going on with
Cliff's, you understand US Steel. Iron ore and the Chinese
infrastructure have to recover before the bears seek out a new
5) Safeway (NYSE:
) - 26.27 percent - This name has had a parabolic 2013. The stock
is up 41 percent this year. Maybe the shorts are betting on mean
reversion in its future. Even with its rising 50 DMA rising, that
still puts it 17 percent lower than current levels.
4) Pitney Bowes (NYSE:
) - 29.25 percent - On Thursday, Stephanie Link told
that she likes the name but with new management possibly changing
focus to M&A, don't expect the almost 11 percent yield to
remain. The high yield has kept short interest in this name
3) First Solar (NASDAQ:
) - 29.49 percent - This is a stock down 91 percent from its 2008
highs. Solar remains under pressure as competition from overseas
manufacturers has all but destroyed the industry.
2) GameStop (NYSE:
) - 36.56 percent - Like music, games are transforming to a
digital delivery model. Shorts are betting that stores like
GameStop will soon be a thing of the past.
1) JC Penney (NYSE:
) - 42.64 percent - Would you expect anything less? With few
exceptions, the only person who has confidence in CEO Ron
Johnson's turnaround is Ron Johnson. The first hint that the
strategy is working could cause an epic short squeeze but for
now, the shorts would argue, "Why abandon what's worked so well?"
The shorts may be Johnson's only friends right now.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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