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Current DateTime: 07:41:55 25 Nov 2009
LinksList Documentid: 30584899
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Market Insider

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May.15
7:06 PM ET
Thursday, 15 May 2008
Short Sellers Prowling for Banks, Solar Stocks

Emerging markets shares, financials and solar stocks remain the top stocks sought by short sellers in the past week, according to Locatestock.com.

John Tabacco, chief executive of Locatestock, said the stock that short sellers have been most willing to pay a premium to locate is LDK Solar [LDK  Loading...      ()], followed by Blue Nile [NILE  Loading...      ()] and Arthrocare [ARTC  Loading...      ()].

"The solar names are still being hit, and while there was some covering in SPWR (SunPower [SPWR  Loading...      ()]), in the last week CSIQ (Canadian Solar [CSIQ  Loading...      ()]) continues to be a target," he said. "I think the solars are experiencing a squeeze, but the rug could get pulled out of it if oil comes off these highs in any substantial way."

"One to watch that has been gaining momentum in price and short requests is DRYS (DryShips [DRYS  Loading...      ()])," Tabacco said. The stock is in the top 10 of stocks being sought by shorts.

The top five stocks sought in the week ended Wednesday were:

  • Lehman [LEH  Loading...      ()] (1.88 million shares)
  • General Motors [GM  Loading...      ()] (1.68 million shares)
  • Canadian Solar (909,000 shares)
  • iShares MSCI Emerging Markets Index (889,600 shares)
  • iShares FTSE/Xinhua China 24 Index (812,000 shares)

Tabacco's firm locates stock for short sellers, who are required to have access to shares they short. That does not mean those stocks will definitely become popular shorts.

Volume at Locatestock in the past week averaged 301.2 million, a slight increase over the week earlier—and a sign that the shorts aren't giving up, Tabacco said.

See what the shorts were looking for last week by checking sought-after short stocks from last week and short stocks from the week before that.

Questions?  Comments? 

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