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

10 Stocks Investors Are Betting Will Fall

BOSTON ( TheStreet) -- Nokia (NOK - Get Report) and Time Warner (TWX - Get Report) had the largest increases in short interest, according to data from the New York Stock Exchange, even as investors turned less bearish.

Short interest, which measures all uncovered short positions in securities, fell during the second half of February, according to the NYSE. Short positions are bets that a stock will fall, where investors borrow shares and sell them at a higher price, hoping to buy the stock back at a lower price to profit on the difference.

According to the NYSE, overall short interest fell to 12.6 billion shares through Feb. 28, down more than 1% from 12.8 billion shares on Feb. 15. During that same period, the S&P 500 fell less than 0.1%. The markets have taken a turn for the worse since as oil and commodity prices continue to soar. Since March 1, the S&P 500 has dropped nearly 2%, including Thursday's 17-point decline, while oil has topped $100 a barrel.

Several equities listed on the NYSE had rapid increases in short interest during the last half of February, some by as much as 50%. Short interest is one indicator that long investors in these stocks could be in for painful declines.

Nokia, for instance, saw short interest balloon to nearly 100 million positions, putting it in the top 5 NYSE stocks with the largest current short positions, which routinely includes Citigroup (C), Ford Motor (F) and Sprint Nextel (S).

The following is a list of 10 stocks that saw the largest percentage increases in short interest from Feb. 15 through Feb. 28, ranked in reverse order. This data was pulled from the NYSE and NYSE Arca's top 100 positions, which is released on a bi-monthly basis.

D.R. Horton (DHI)

Company Profile: D.R. Horton constructs and sells homes in U.S. Through the company's financial services operations, it also provides mortgage financing and title agency services.

Short Interest Change: Short interest in D.R. Horton climbed 8.4% to almost 29 million positions as of Feb. 28. Not surprising, the stock is down 3.4% in the last month. D.R. Horton shares were hit hardest on Feb. 22 after the S&P Case-Shiller 20-city index -- a key read on the housing sector -- fell 2.4% from a year ago.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
1 of 6

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
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
Only $49.95
14-Days Free
14-Days Free
HCP $33.83 -0.24%
GM $31.80 -1.97%
NOK $5.87 -0.84%
TWX $75.14 -2.10%
X $19.11 4.08%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs