Should the Market Rally, play High Short Interest Stocks (UA, NFLX, URBN)
Source: http://thestockmasters.comPosted on Friday, August 22nd, 2008 | In Investing Lessons
A quick Bull rally could happen next week, what’s one way of playing it to benefit the most? High short interest stocks that are profitable companies and are credible businesses. We’re not talking about Crocs Inc (CROX), rather the few companies that will return to greatness and may get caught in a short squeeze.
In finance, a short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock.
Short squeezes result when short sellers cover their positions on a stock. This can occur if the price has risen to a point where these people simply decide to cut their losses and get out. (This may happen in an automated manner if the short sellers had previously placed stop-loss orders with their brokers to prepare for this eventuality.) Since covering their positions involves buying shares, the short squeeze causes an ever further rise in the stock’s price, which in turn may trigger additional covering.
Short squeezes are more likely to occur in stocks with small market capitalization and small floats.
This list is highly speculative and the Masters are not recommending our readers to go out and buy everything on the list, but do add them to a watch list. Here’s a lineup of potential short squeeze candidates that the Masters have their eye on, all of these guys have a short interest greater than 30% of the float. Some are better than others, but the point of this exercise is targeting the short interest stocks that may jump on a moments notice.
Here are the tickers so you can cut/paste them into a portfolio:
UA MWA NTRI BIDZ NFLX URBN VPRT WBMD
Name![]() |
Symbol![]() |
Last price![]() |
Change![]() |
Mkt cap![]() |
Volume![]() |
Open![]() |
High![]() |
Low![]() |
|
| Under Armour, Inc. | UA | 32.83 ![]() |
+0.22 (0.68%) | 1.62B | 214,168.00 | 33.74 | 33.8 | 32.61 | |
| Mueller Water Products, Inc. | MWA | 11.21 ![]() |
+0.19 (1.72%) | 1.29B | 94,662.00 | 11.11 | 11.326 | 11.02 | |
| NutriSystem Inc. | NTRI | 18.78 ![]() |
-0.61 (-3.15%) | 556.64M | 244,948.00 | 19.6 | 19.86 | 18.806 | |
| BIDZ.com, Inc. | BIDZ | 8.95 ![]() |
-0.04 (-0.44%) | 211.51M | 89,651.00 | 9.06 | 9.26 | 8.95 | |
| Netflix, Inc. | NFLX | 30.26 ![]() |
+0.26 (0.87%) | 1.84B | 268,595.00 | 30.1 | 30.78 | 30 | |
| Urban Outfitters, Inc. | URBN | 34.97 ![]() |
+0.54 (1.57%) | 5.84B | 965,519.00 | 34.76 | 35.6 | 34.62 | |
| VistaPrint Limited | VPRT | 31.26 ![]() |
-0.65 (-2.04%) | 1.38B | 288,144.00 | 31.41 | 31.91 | 30.75 | |
| WebMD Health Corp. | WBMD | 31.01 ![]() |
-0.45 (-1.43%) | 1.78B | 57,042.00 | 31.46 | 31.78 | 30.74 | |
Name![]() |
Symbol![]() |
Last price![]() |
Mkt cap![]() |
Avg vol![]() |
52wk high![]() |
52wk low![]() |
EPS![]() |
P/E![]() |
Fw P/E![]() |
Beta![]() |
|
| Under Armour, Inc. | UA | 33.00 ![]() |
1.62B | 1.18M | 69.91 | 23.5 | 0.82 | 40.14 | 35.47 | ||
| Mueller Water Products, Inc. | MWA | 11.18 ![]() |
1.29B | 588,000.00 | 14.18 | 6.64 | 0.34 | 33.16 | 1.00 | ||
| NutriSystem Inc. | NTRI | 18.84 ![]() |
557.21M | 935,000.00 | 58.48 | 12.55 | 2.05 | 9.21 | 2.76 | ||
| BIDZ.com, Inc. | BIDZ | 8.90 ![]() |
211.27M | 284,000.00 | 22.5 | 7.09 | 0.74 | 12.06 | |||
| Netflix, Inc. | NFLX | 30.20 ![]() |
1.84B | 1.64M | 40.9 | 16.92 | 1.09 | 27.75 | 2.62 | ||
| Urban Outfitters, Inc. | URBN | 34.94 ![]() |
5.84B | 4.05M | 37.09 | 20.75 | 1.02 | 34.26 | 1.34 | ||
| VistaPrint Limited | VPRT | 31.22 ![]() |
1.38B | 957,000.00 | 48.6 | 24.46 | 0.87 | 36.09 | |||
| WebMD Health Corp. | WBMD | 31.07 ![]() |
1.80B | 263,000.00 | 63.49 | 21.86 | 0.70 | 44.49 |
According to Finviz.com, the short interest in these stocks is the following:
UA
| Short Float | 61.29% |
MWA
| Short Float | 37.62% |
NTRI
| Short Float | 72.07% |
BIDZ
| Short Float | 31.84% |
NFLX
| Short Float | 51.42% |
URBN
| Short Float | 30.19% |
VPRT
| Short Float | 44.47% |
WBMD
| Short Float | 59.39% |
At some point the best players on this list will comeback, such as Under Armour, Inc. , Netflix, Inc. and Urban Outfitters, Inc.
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BIDZ.com Inc, Crocs Inc, finance, Investing Lessons, Mueller Water Products Inc, Netflix Inc., NutriSystem Inc, Under Armour Inc., Urban Outfitters Inc, VistaPrint Limited, WebMD Health Corp




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