NEW YORK ( TheStreet) -- Tuesday was a blood bath for the First Solar (FSLR - Get Report), LDK Solar (LDK), Trina Solar (TSL), Yingli Green Energy (YGE), and Sun Power (SPWR) short sellers. The short seller party was well attended based on the latest short interest numbers.First Solar and SunPower have eye-popping 36% and 21% of their floats shorted, respectively. When First Solar announced what appeared on the surface to be vastly improving financials, there wasn't time to think. Once the stocks started moving higher, it was shoot first and ask questions later.
- Increased at least 35 percent from the opening price
- Starting price of at least $12
- Ranked in the top 2500 stocks by volume
Stockfinder reports the odds of the next day moving higher is only 43%, compared to a 57% chance the next day will result in a lower closing price. While the odds of higher prices doesn't initially appear terribly atrocious, it's the amount of depreciation experienced when the price does fall that indubitably places price chasers in a world of misery. If you buy at the close of the spike and hold for a week, the results become even more painful. The winning percentage drops to only 21 percent, and the expected rate of return drops to a negative 2000% (-2125% to be exact).