Chilean air carrier Lan Airlines (LFL) is one heavily shorted foreign name that's actually having a strong year in 2012. Shares of the firm have rallied close to 12% since the first trading day of January, price action that's got to be painful for short sellers right now. With a short interest ratio of 11.1, it would take shorts more than two weeks to exit their positions at current volume levels.
The airline won't be called Lan for long. Following a merger with Brazil's TAM (TAM) that closed on Friday, the combined firm will be called LATAM and will begin trading under that name on the NYSE tomorrow.>>5 Bargain Stocks With Tons of Cash Lan is the flag carrier for Chile, positioning that gives the firm advantages over others in its homebase. Size gives the combined LATAM group other advantages -- the merger makes LATAM the biggest carrier in Latin America and should provide the combined firms with as much as $700 million in cost savings annually. Lan has been a perennial short target for U.S. investors in the past year or two. Lower costs and a bigger footprint should help to shake out the week hands once the combined firm starts trading.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV