A Stock Strategy for Small Floats and High Shorts

09/07/07 - 12:53 PM EDT

Stockpickr Guest Columnist

Another possible play is MCG Capital(MCGC Quote - Cramer on MCGC - Stock Picks). The Arlington, Va., company, which specializes in investments in middle market firms, invests in acquisitions, growth financing and leveraged buyouts. The float is roughly 60 million shares, of which about 9.6% is traded short.

The stock has dropped 30% year to date, but the firm just reported a 66% jump in second-quarter earnings, beating Wall Street expectations. Credit markets have definitely impacted the stock performance so far this year, but if the Federal Reserve cuts rates, the stock could benefit.

To see the rest of this week's picks -- including First Solar(FSLR Quote - Cramer on FSLR - Stock Picks) and Under Armour(UA Quote - Cramer on UA - Stock Picks) -- check out the 10 Stocks With Low Floats and High Short Interest portfolio at Stockpickr.com.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Hoku Scientific to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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At the time of publication Pedone had no positions in stocks mentioned, although positions may change at any time.

This article was written by a member of the Stockpickr community.

Stock recommendations and comments presented on Stockpickr.com are solely those of the members quoted. They do not represent the opinions of Stockpickr.com on whether to buy, sell or hold shares of a particular stock.

Members should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into a member's stock analysis or opinion.

All members are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance or portfolio performance is no guarantee of future price appreciation or performance.

Furthermore, Stockpickr.com does not guarantee the accuracy or completeness of information on the site, nor does Stockpickr.com assume any liability for any loss that may result from reliance by any person upon any such information or recommendations. Such information recommendations are for general information only.

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