Saturday, July 9, 2011

The 15 Stocks That Everyone Is Shorting Like Crazy

Vikram Pandit

UBS is out with its latest list of the 15 stocks that are shorted by the most clients.

The list includes some big blue chips, while other names hot names have fallen off the list.

Several on the list have been perennial frustrations for short sellers. Others are new names. Citigroup makes an appearance on this list.

Note: Stocks identified are from a UBS report. Data on YTD returns and short percent of float are from Yahoo Finance.

First Solar Inc.

YTD return: +1.38%

Short percent of float: 46.4%

Jim Chanos thinks solar stocks are a bunch of "hot air". He expects First Solar to have negative cash flow in a year, key executives have left the company, and has seen massive insider selling at the company according to The Street. He's also short solar stocks because he expects Eurozone austerity to hurt government subsidies for the solar sector.

YTD return: +17.4%

Short percent of float: 10.4%

Value investor Whitney Tilson is short on on account of insider selling, the company reportedly has the second highest level of insider selling in corporate America and on account of the company diluting shareholders according to The company is also expected to lose market share as competition from Microsoft heats up.

Green Mountain Coffee

YTD return: +187.13%

Short percent of float: 16.6%

Greenmountain has attracted controversy because of its huge growth, sky-high valuations and allegations of tricky accounting. It also faces increased competition in the single-serve coffee front. Short-sellers however been frustrated because the stock seems to keep climbing.

See the rest of the story at Business Insider

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