Small Cap Heavily Shorted Stocks for January
10-Jan-06 12:23 ET
[BRIEFING.COM -- Robert J. Reid] In our January edition of Heavily Shorted Stocks, our goal is not to argue for or against these names. We provide highly shorted names for traders seeking short squeezes and for traders looking to short a negative story. Today, we highlight ESCL, SFCC, CONN. We also highlight the 30 Most Highly Shorted Stocks. In addition, we update our new feature which should appeal to traders: Stocks with High Short Interest with a 10 mln Share Float or Less.
Escala Group (ESCL 20.16 +0.06)
* Escala, formerly known as Greg Manning Auctions, has a number of businesses focused on the collectibles market: auctions, merchant/dealer operations and trading.
* The co has been getting some negative press recently.
* In late Nov, a Wall St Journal article outlined how the co is being questioned by state and federal authorities as part of a wider investigation into allegations that money managers mishandled funds invested by the Ohio Bureau of Workers' Compensation. Escala is also being pursued for funds by a court-appointed official in charge of liquidating Capital Coin, a now-defunct rare-coin venture that was one of the Ohio agency's money managers.
* StockLemon.com has questioned the co's Quality of Earnings and Business Model.
* The stock has been strong (+100% since late May) and remains near a new 52-wk high which is also drawing shorts to the name.
* Short interest jumped to 46% from 34% last month. Float 6.4 mln
SFBC International Inc. (SFCC 18.53 -0.46)
* Co provides early and late stage clinical drug development services to branded pharmaceutical, biotechnology, generic drug and medical device cos around the world.
* In mid-Nov, Bloomberg.com ran a story that the co, which runs the largest private drug test center in North America, threatened to arrange federal deportation of Latin American immigrants who disclosed health risks in clinical trials. The article also stated that participants also said the co tried to make them sign false statements.
* Co now has a new C.E.O. as Arnold Hantman is retiring.
* Analysts have been defending the stock. UBS recently upgraded SFCC to Buy from Neutral following the new C.E.O. announcement as the co should be able to start rebuilding lost credibility.
* Short interest is huge at 76% of the float (16.7 mln shares).
Conns (CONN 41.98 +0.36)
* Co is a specialty retailer of appliances and consumer electronics. It operates 56 stores in Texas and Louisiana.
* Stock has been a huge winner this year (+110% since mid-June).
* Results have been impressive as Q3 same store sales were up 23.2% yr/yr, which is unheard of from a non-apparel retailer.
* It looks like shorts are entering the name as they see these results as unsustainable and a one time benefit from Katrina (co has huge exposure to LA, TX area). Also, the valuation may be getting a bit rich with a p/e of 23x on Jan07 EPS vs 19x for BBY. However, a strong JanQ could be a catalyst.
* Traders like its small float of 9.6 mln shares and 26% short interest.
Notable Increases in Short Interest
* MOVI saw a huge spike to 67% from 49% last month as shorts believe the pressures on the co are mounting (huge debt, Netflix, consumers are now buying DVDs more etc.)
* FORD saw its SI jump to 45% from 37% as momentum traders have moved on from this one and the shorts are hoping to drive it down further now that the momo guys are losing interest here.
* PCYC saw a huge spike to 41% from 27% as its pivotal Phase 3 clinical study of Xcytrin Injection did not meet the study's primary endpoint.
Notable Decreases in Short Interest
* The shorts appear to be finally giving up on BOOM which has been a monster for a year now as its SI has fallen to 47% from 59% despite the stock rising. Gives us some hope PWEI may be able to follow suit.
* TZOO saw its SI fall to 41% from 48%. Shorts have done well here, but the stock has been forming a decent base in the $20 area so some shorts are moving on.
* Shorts have been covering on TRLG as they are beginning to realize the brand is not just a fad. SI now at 35% from 51%.
* Shorts continue to cover on NTMD as it has fallen each of the last 2 months to 45%. Shorts have made money here, look to be moving on.
* ADBL's SI also keeps falling as the stock has been forming a decent base in the $10-15 range..
Stocks with High Short Interest with a 10 mln Share Float or Less
We highlight these stocks for active traders looking for volatility. See Top 30 table below for the first several names. Others include: ABLE 34% short interest, 1.6 mln share float; WPTE 33%, 6.0 mln; WLS 32%, 2.2 mln; NVEC 32%, 4.3 mln; EXP 31%, 8.9 mln; RATE 29%, 9.3 mln; HEI 28%, 6.4 mln; CONN 26%, 9.6 mln; IMM 24%, 9.8 mln; CTHR 24%, 9.8 mln; WRSP 23%, 8.3 mln; HRT 23%, 2.1 mln; USNA 22%, 10.0 mln; SSYS 22%, 8.7 mln; ATLS 22%, 2.4 mln; ZEUS 21%, 7.9 mln; BWLD 20%, 7.9 mln; CTAC 19%, 5.9 mln.
Top 30 Most Highly Shorted
Rank Stock % of Float Short - Jan % of Float Short - Dec % of Float Short - Nov Float (mln) Mkt Cap (mln) YTD Return
2 MOVI 67% 49% 49% 25.9 172 -4%
3 OSTK 65% 66% 56% 10.9 531 -2%
4 PARL 61% 60% 52% 6.4 281 +3%
5 DECK 54% 53% 60% 10.8 384 +12%
6 RVI 53% 52% 52% 17.5 507 +3%
7 LEND 53% 60% 49% 18.2 1,040 -4%
8 KKD 48% 49% 49% 52.0 352 -1%
9 BOOM 47% 59% 53% 5.0 391 +11%
10 OVEN 46% 43% 40% 15.9 406 -1%
11 ESCL 46% 34% n/a 6.4 546 -3%
12 AMED 46% 46% 51% 15.3 727 +9%
13 CKCM 45% 49% 33% 7.4 273 +16%
14 FORD 45% 37% 42% 7.3 74 +7%
15 NTMD 45% 49% 54% 20.5 442 +4%
16 GMTN 44% 47% 47% 3.9 76 -10%
17 SUP 43% 36% 36% 17.9 572 -3%
18 NAVR 42% 42% 42% 26.1 169 +2%
19 FMD 42% 43% n/a 26.4 2,064 -3%
20 TZOO 41% 48% n/a 3.5 370 +3%
21 IOTN 41% 35% n/a 24.0 731 +1%
23 ADBL 38% 43% 45% 15.5 318 +2%
24 MWY 37% 34% n/a 6.0 1,571 -8%
25 MATK 37% 34% n/a 27.4 883 +13%
26 NEOL 37% 33% n/a 15.7 263 +3%
27 ALGN 36% 36% n/a 38.6 384 -4%
28 BDY 35% 32% n/a 13.2 160 +7%
29 TRLG 35% 51% 46% 12.2 429 +26%
30 MDTL 35% 31% n/a 14.4 427 +5% |
