Investors should be cautious. The company reports on March 24, and the benefits of Blackberry 10 will not be known until the quarter after.
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3. Zynga, Inc. ( ZNGA): Market cap at $1.98B, most recent closing price at $2.53. Short-selling declined for Zynga, Inc. by 6.3%. Shares rallied, possibly on optimism that another social network company, Twitter, could be worth $9 billion, according to Blackrock. Investors should avoid Zynga. The company will experience devastating declines from game sales at Facebook. Facebook is releasing “graph search,” which makes games much less visible to users, unless friends happen to be active in games. Investors should be wary of Zynga shares.
4. First Solar, Inc. ( FSLR): Market cap at $2.43B, most recent closing price at $27.91. FSLR shares are losing their shine after peaking at nearly $35 at the start of the year. Short-selling volume declined 14.7% between December 31 2012 and January 15 2013. Prospects for First Solar are strong. Investors should wait for shares to settle before adding a position.
5. Ctrip.com International Ltd. ( CTRP): Provides travel services for hotel accommodations, airline tickets, and packaged tours in the People's Republic of China. Market cap at $2.87B, most recent closing price at $19.99. CTRP plunged from $24 to around $20 recently, after short-sellers reduced their bearish bet. Investors should be reminded that Ctrip.com is not like Priceline ( PCLN) or Expedia ( EXPE). Shares declined after Oppenheimer said its coupon program will extend to plane tickets. A price war would substantially reduce earnings and threaten the viability of the Chinese online travel firm sector.