Stockpickr
These Small Banks Are the Winners
Stockpickr Staff
07/31/08 - 11:26 AM EDT
Updated from 6:59 a.m. EDTBank stocks have been dropping substantially over the last year. In the last couple of weeks, they had a really big drop, especially money center banks, creating a short-squeeze opportunity.
A short squeeze takes place when a stock's short-sellers cover their positions quickly when good news boosts the price of the stock. This short-covering often drives the stock price even higher. The metric for measuring short-squeeze plays is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions based on the stock's recent average daily volume.
With this in mind, here at Stockpickr we've compiled a portfolio of the top money center bank stock short-squeeze plays, including Scotiabank(BNS Quote), TCF Financial(TCF Quote) and Toronto Dominion(TD Quote)
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A note from James Altucher: Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap. Here are some examples: Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other hedge fund managers on my list.