This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Heavily Shorted Stocks That Hedge Funds Love

Stocks in this article: HLF CHK SLCA NILE JCP

Cohen just raised his stake in Blue Nile by 104.53% after he purchased a total of 342,114 shares of the stock at an average price of $37.50 a share. Cohen now holds 669,414 shares of Blue Nile.

>>4 Stocks to Profit From the Bounce

This company recently reported second-quarter earnings, and its net income jumped 40% on improved revenue. Blue Nile earned $2.2 million or 17 cents per share during the quarter, which is up from $1.6 million, or 11 cents per share, from last year. Revenue increased to $108 million from $91 million on improved sales in both its domestic and international business. For the full year, the company said it expects to earn between 75 and 85 cents per share on revenue between $440 million and $470 million. Wall Street analysts were anticipating earnings of 82 cents per share for the year on revenue of $454.8 million.

From a technical perspective, NILE has been basing and trending sideways for the last two months, with shares moving between $40.44 on the upside and $35.55 on the downside. Shares of NILE have just started to bounce higher right above its 200-day moving average of $35.77 a share, and it's flirting with its 50-day moving average of $38.12 a share. That move is quickly pushing shares of NILE within range of triggering a big breakout trade. That trade will hit if NILE manages to take out some near-term overhead resistance levels at $40.20 to $40.44 a share and then once it clears its 52-week high at $43.54 a share with high volume.

If that breakout triggers soon, then NILE could easily setup for a monster short squeeze. This stock has traded as high as $60 a share, which was a level last seen for NILE back in 2011. I would add to any long position in NILE if it takes out $50 since that's the last major resistance level from 2011 between the stock and tagging $60 a share.

Another billionaire making a big move into a heavily shorted stock is George Soros, the chairman of Soros Fund Management, the $24 billion firm that manages his personal fortune as well as the money belonging to his foundations.

6 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs