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3 Stock Picks From Shorts' Clues
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One way to pick stocks is to watch short interest for clues. Paul Hickey, Bespoke Investment Group co-founder, told CNBC the buys he's making based on his short-watching method.
First, the strategist said he's sticking with predictions and picks he'd made on July 22 -- when he called for oil prices to sink. Hickey said a bear market for crude would boost Hasbro [HAS
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] and Valero [VLO
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].
The toy maker now "is a little overbought, but we still like it. ... And oil is still coming down," so the refiner "should enjoy even better margins."
Recommendations:
Watching short interest, Hickey suggests buying:
- health care services provider Pharmerica [PMC
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] , whose short interest is over 16 percent of the float.
- Microsemi [MSCC
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], a small-cap processor play on defense and health care. He says its short interest is 16 percent of the float; plus, Microsemi raised its guidance in its last quarterly report.
- Finally, Hickey recommends buying Internet movie-rental company Netflix [NFLX
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CNBC Investor Intelligence:
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Disclosures:
Disclosure information was not available for Hickey or for his company.
Data is a real-time snapshot *Data is delayed at least 15 minutes
