Stocks where shorts now have the weaker hand

Discussion in 'Stocks' started by Option Trader, Mar 25, 2008.

  1. Would anyone like to suggest some stocks (to add to my watch list) where a recent change in the company (i.e. merger, balance sheet or prospectus, etc.) now puts ongoing pressure on the shorts?
    Thank you in advance.
  2. borders and cc you may want to look at.

    CC had article in wsj over weekend about new insider ownership that may look to activism to turn things around. stock has gotten destroyed - i covered my shorts. it could run up huge its so beaten down, but i wouldnt buy it.

    borders is more interesting. ackman owns huge piece, is loaning money to the company, and theyre looking for a buyer. lotta shorts, beaten down a lot, could also pop from here...

    those are first two that come to mind, probably b/c ive been short forever and covered this week worried they could rally alot. borders has more near term catalysts tho...
  3. potentially all financial and homebuilding stocks. a ton is already priced in.
  4. Nothing is safe from shorts and sellers. They are a stronger group in this below 200 day moving average and trading levels. They will vanish once we get over it. Markets always get over it as they have in the past.
  5. To cmdtytrdr: thank you for this input.

    To Robbie: don't you think that's like trying to catch a falling knife? Shorts are aware that bargain hunters are some of the biggest candidates for buying so they take advantage of that as well. What do you think would be an example of a stock that just can't go lower anymore?

    That may be for the overall market, but there are always individual stocks that move down only because of the market (exaggerated more by shorts), but then come right back up again because buyers come in.
  6. SIGM, shorts have killed it

  7. GOOG, AAPL, CROX, SIGM can the shorts kill anymore?

    Not much left unless it rallies. Markets have to improve due to abundance of destroyed stocks and Technical charts there not much you can extract..

  8. i'm being lazy and don't really care because douchebags like hedgefundtrader wear me thin but just watch how the stocks react to terrible news. i'd say homebuilders won't go down past their prior lows if they get back down there. shorts are likely looking to move on since the story is played out. they will still be in a volatile range but i think the bottom is in and enough is discounted. yes homeprices will continue to fall nationwide due to cali, florida, and the northeast but for the rest of the nation prices have pretty much stabilized.

    select banking stocks are good as well but you got to figure out which ones are good and which are not. most notably JPM would be a great megacap.
  9. shorts or missing earnings, revs, margins, excess inventory, and heavy competition? nah couldn't be any of the can only be the evil shorts!

    certainly an intriguing value stock at these levels but the company has to surprise rather than disappoint.