This Day On The Street
Continue to site
ADVERTISEMENT
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

6 Companies Facing Heavy Short-Selling

Investors betting against the prospects of a company will short-sell a stock. This is most likely to be profitable when a company’s business model is broken. Short-selling a company based only on valuation may also be profitable, but it is also a speculative move.

7 Traits For Companies Seeing Heavy Short-Selling

 Bearishness against a company increases if a company:

- Reports weak earnings
- Is suspected of having or has accounting irregularities
- Loses a major customer
- Is at a competitive disadvantage within the sector it is operating
- Running out of cash
- Has unmanageable debt, and could become bankrupt in the future
- Thin margins are not sustainable for the long term

Business Section: Investing Ideas

Companies that have the highest short interest include:

1. ITT Educational Services Inc. ( ESI, Earnings, Analysts, Financials): Offers postsecondary-degree programs in the U.S. that provide diplomas as well as associate’s, bachelor’s, and master’s degrees. Market cap at $407.87M, most recent closing price at $17.49. For-profit education is in a bubble in the United States. To get a job, students must obtain better education, but the costs are rising. Student debt becomes difficult to manage but school fees keep rising. The business model is unsustainable. Investors have a short interest of 32.22 for ITT.

 

2. Safeway Inc. ( SWY, Earnings, Analysts, Financials): Operates as a food and drug retailer in North America. Market cap at $3.98B, most recent closing price at $16.60. With a short interest of 32.42, Safeway operates with very low margins. Investors are betting Safeway cannot operate at such levels for the long term.

 

3. K12, Inc. ( LRN, Earnings, Analysts, Financials): Provides proprietary curriculum and educational services for online delivery to students in kindergarten through 12th grade (K12) primarily in the United States. Market cap at $720.96M, most recent closing price at $19.57. K12 suffers from the same problems as ITT. Short interest: 33.19.

 

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
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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs