Often times when a stock has a giant short position there is something wrong with the company. For the most part, professional short sellers are very intelligent and are extraordinarily detailed in their reasoning behind their downside bets. In downward trending markets, I like to sell short stocks with a large percentage of shares sold short— for the “pile on” effect. Typically, those stocks are easy to break, because people think something is wrong with them. It’s all about perception.
However, in upward trending markets, the sharp edge of the pendulum swings the other way, into the scrotums of the steadfast/stubborn short sellers. Hence, when the markets are shooting higher, I like to go long stocks with large short positions.
Reason being: short sellers can only take so much pain, before they are forced to capitulate and buy back shares, sending said names through the fucking roof. Anyone familiar with Resorts International? Look it up, pal.
Wall Street is littered with legendary short squeeze stories. Why not try to participate in one, while the market is pistol hot?
The following stocks represent the best short squeeze ideas, courtesy of The PPT:
GDP, CSTR, NFLX, JCG, SD, ADVS, AIPC, AKAM, AMED, NILE, SHS, CBL, DSW, SYNA, EQIX, SHLD, ATPG, TNDM, NTRI, GMCR, PCX, CENX, ARD, VPRT, CYBS and MAC.
NOTE: Most of the stocks mentioned above have short positions representing more than 20% of the shares in the float.
NOTE II: In case you didn’t know, iBankcoin launched its second premium service, based upon the work of Mr. Woodshedder, kind venerable gentleman of the south. I insist that you sign up for the free trial (only email address is required). Worst case scenario, you get to bear witness to iBankCoin’s supremacy, when it comes to premium financial products—here on these retarded internets.
Comments »