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3 Stock Picks From Shorts' Clues

CNBC.com
Wednesday, 13 Aug 2008 | 9:34 AM ET

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 and Valero.

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:

Street Insider
Trading on short interest, with Paul Hickey, Bespoke Investment Group co-founder and CNBC's Erin Burnett.

- health care services provider Pharmerica , whose short interest is over 16 percent of the float.

- Microsemi, 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.

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CNBC Investor Intelligence:

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Disclosures:

Disclosure information was not available for Hickey or for his company.

Disclaimer

  Price   Change %Change
HAS
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MSCC
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NFLX
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PMC
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VLO
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