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Dorman Products(DORM - Get Report) produces original equipment dealer replacement parts for automobiles. One lingering result of the financial crisis is that the age of the existing fleet of cars in the U.S. is at a record high 10.8 years. As a result, consumers and even commercial operators of automobiles have been spending more money repairing their existing vehicles.
The company is expected to increase earnings by 16% in 2011 and 14% in 2012. The stock sells at 13 times forward earnings, a discount to its growth rate. Short-sellers think the stock will break down alongside the road and have shorted about 5% of outstanding shares with a short ratio of about 13.
Dorman Products might not be a sleek high growth sports car but it is cheap by the numbers and it too heavily shorted.
To see these stocks in action, check out the
5 Small-Cap Growth Stocks With High Short Interest portfolio.
-- Written by Scott Rothbort in Millburn, N.J.