Banco de Chile
It's been a strong year for Banco de Chile (BCH), another foreign banking stock that's boasting a hefty short interest ratio right now. Shares have rallied more than 13.7% in the last 12 months, returns that look even more impressive when they're compared to the 21.6% decline that the financial sector has posted over that same period.
The Latin American banking sector has been heating up for the past several years, and BCH has been a big beneficiary. The firm dramatically increased its top and bottom lines during the recession, an impressive feat given the fact that the financial crisis had a worldwide reach. Comparatively higher rates in the Chilean market mean that BCH is able to collect some impressive margins on its banking business -- more than 31% in the firm's latest quarter.Again, here's a case where a high dividend and currency exposure are fuelling shorts. The firm's 3.79% payout is based on earnings in Chilean pesos, another currency with a checkered past that looks less attractive given the dollar's recent strength. That said, Chile boasts a very different banking industry than ours here at home, and many investors are welcoming the peso exposure. The firm's short ratio of 11.2 makes it a solid short candidate for 2012. To see this week's short squeezes in action, check out the Blue Chip Short Squeeze portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV