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

5 Stocks That Could See Major Downside

NEW YORK ( Stockpickr) -- After steady gains in the first quarter and steady losses in the second quarter, the third quarter still hasn't shown its full hand.

One group hoping for a turn to the downside is the short-sellers. They are maintaining large short positions in some very popular stocks, hoping either company-specific bad news or a tough market will bring stock prices down -- and profits to short-sellers.

Even if you don't short stocks yourself, you still need to heed the actions of short sellers. If they are targeting a stock you own, then you need to think long and hard about whether you have a lot of confidence that these shorts are wrong.

>>5 Hated Stocks Set to Soar on Earnings

Here are five stocks that may be headed for a fall, at least according to short sellers.  

Chesapeake Energy

Short Position: 83 million shares (as of July 13)

Chesapeake Energy (CHK - Get Report) looked headed for big trouble in the spring when natural gas prices were plunging to multi-year lows and the company's chief executive was being pilloried for a series of conflict-of interest moves. Since then, new independent board directors have been brought to bring the CEO to heel, and gas prices have staged a solid 50% rebound.

Still, Chesapeake, which owns vast amount of energy-producing real estate, is faced with a major cash flow problem. The company has a huge funding gap as it aims to complete all of its capital spending plans. Chesapeake is hopeful that the rising cash flow that will result from rising gas prices, along with several asset sales, will raise the funds to keep business afloat.

>>5 Blue-Chip Stocks Ready to Boost Dividends

Short-sellers are betting that Chesapeake is ill-equipped to actually raise all the money it needs, and they see a big cash crunch coming. If that happens, shares would quickly move lower.
1 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
BAC $15.80 0.32%
CHK $9.34 2.08%
HPQ $29.18 4.18%
NOK $7.01 -0.43%
SVU $7.66 2.82%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs