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Current DateTime: 03:37:14 29 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

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Aug.13
9:34 AM ET
Wednesday, 13 Aug 2008
3 Stock Picks From Shorts' Clues
Posted By:CNBC.com

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  Loading...      ()   ] and Valero [VLO  Loading...      ()   ].

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  Loading...      ()   ] , whose short interest is over 16 percent of the float.

- Microsemi [MSCC  Loading...      ()   ], 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  Loading...      ()   ].

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CNBC Investor Intelligence:

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Disclosures:

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

Disclaimer

© 2009 CNBC.com

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