Gems on the SHO List

There are tons of companies out there that have been shorted nakedly, a game that just ended today. I am not saying that all of these companies deserve to be bought. I am not saying all of these companies don't have problems. Many do. Many are speculative, many maybe shouldn't be public.

But some of these companies are profitable, very profitable, and they are way overly shorted, and you have to believe that the covering could be brutal.

Let me give you my quick list of profitable companies on the list that might have been forced down by short-sellers. (The whole SHO list can be viewed online, here for the NYSE and here for the Nasdaq.)

First, let me say that of the ones that are overly shorted, I like Ethan Allen (ETH - commentary - Cramer's Take), Sears (SHLD - commentary - Cramer's Take), Bankrate (RATE - commentary - Cramer's Take) and Panera (PNRA - commentary - Cramer's Take), all profitable, all either doing well or could turn, and all do well if the housing market turns.

But I don't want to do more right now than show you companies that perhaps should not be overly or nakedly shorted, simply because they are not going away. Here's my back-of-the-envelope list, first the New York Stock Exchange and then the Nazz:

NYSE:

• Chipotle (CMG - commentary - Cramer's Take)
• Ethan Allen
• Greenbrier (GBX - commentary - Cramer's Take)
• J Crew (JCG - commentary - Cramer's Take)
• Martha Stewart Omnimedia (MSO - commentary - Cramer's Take)
• Vail Resorts (MTN - commentary - Cramer's Take)
• Tootsie Roll (TR - commentary - Cramer's Take)
• Under Armour (UA - commentary - Cramer's Take)
• Vulcan Materials (VMC - commentary - Cramer's Take)

Nasdaq:

• Columbia Sportswear (COLM - commentary - Cramer's Take)
• Green Mountain Coffee Roasters (GMCR - commentary - Cramer's Take)
• Garmin (GRMN - commentary - Cramer's Take)
• Lululemon (LULU - commentary - Cramer's Take)
• PF Chang's (PFCB - commentary - Cramer's Take)
• Panera
• Bankrate
• Sears Holdings

Again, I am not saying that these companies deserve to go higher; I am saying that they seem overly shorted and are hard to borrow, and those who are short them will have a hard time finding stock.

We all know the financial firms have been wrecked by this process and the lack of an uptick rule. I think that the SEC should bring back the uptick rule on a trial basis.

But I wanted to get you started with this list because it may intrigue you as companies to research and perhaps buy, particularly if you believe that retail and housing can come back sometime next year.

Random musings: Why not bring back the uptick rule on a trial basis? What would be wrong with that? It worked for so long -- it could work again.

At the time of publication, Cramer had no positions in the stocks mentioned.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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