This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Squeezing the Shorts: Health Care Stocks

HLTH (HLTH) is an online services company that owns a number of health-related companies, most notably a majority interest in WebMD (WBMD - Get Report)ealth information and tools as well as private portals for insurers and employers for electronic medical records. One of the company's key selling points is lowered medical costs -- and through consumer education and low-cost electronic record-keeping, that's exactly what WebMD delivers.

But HLTH, which currently has a short interest ratio of 36.6, has its detractors as well. For the past year, to the chagrin of many investors, the company has focused on selling some of its primary subsidiaries, including Porex and Emdeon Business Services. But once this divestiture-happy management team has sold off nonkey elements of HLTH's business, the company should have the capital and the intellectual resources to focus on growing share prices once again.

One fund that's on board is the Fidelity Balanced Fund (FBALX), a four-star Morningstar-rated fund that also holds big stakes in Micron Technology (MU - Get Report) and Verizon (VZ - Get Report).

The pharmaceutical industry is no stranger to short squeezes; FDA news and drug-licensing deals can swing a pharma stock in the blink of an eye. But not all pharmaceutical plays are worth the added risk of going long against a sea of shorts. That's not the case with Alnylam Pharmaceuticals (ALNY), a mature biotherapeutics company that has rights to incredible, Nobel Prize-winning intellectual property and alliances with some of the biggest names in big pharma. The company also has a short interest ratio of 30.17.

And with shares down 12% thus far in 2009, short-sellers have been piling into this play, setting the stage for a potentially profitable short squeeze with a number of medical conferences schedules for the rest of the year. Big owners in this stock include the Morgan Stanley Institutional Small Company Growth Fund (MSSGX), which owns shares of interesting small-caps such as Techne (TECH - Get Report) and Grupo Aeroportuario del Pacifico (PAC).
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
HLTH $1.98 0.00%
MU $10.02 0.00%
PAC $79.73 0.00%
TECH $84.58 0.00%
VZ $50.11 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs