August started off as a tough month for short sellers, but that's a positive sign for the market and some stocks are still a "buy," Bespoke Investment Group's Paul Hickey said Thursday.

So far this month, the 25 most heavily shorted stocks in the S&P 1500 have outperformed the rest of the market.

On CNBC's "Fast Money," Hickey said that he saw three buying opportunities within the group: Conversant,Albany Molecular Research and SunEdison.

"Most of this year the most heavily shorted stocks have been underperforming the rest of the market, but in August we've seen a rebound in the performance." Hickey added, "And I think that bodes well for the overall market."

—By CNBC's Kristin Cwalinski