Skip to main content

With the financial sector dominating the business news headlines, and financial stocks such as Goldman Sachs (GS) - Get Goldman Sachs Group Inc. (The) Report and JPMorgan (JPM) - Get JP Morgan Chase & Co. Report helping to lead some moves higher, now may be the time to look at heavily shorted names in the sector in anticipation of a snapback, when short-sellers scramble to cover their positions.

This is especially true with companies such as

Lehman Brothers

( LEH) and


(UBS) - Get UBS Group AG Registered Report

, who are fighting the short-sellers by issuing stock to increase their liquidity. The key ratio for analyzing short-squeezes is the short ratio, which represents the number of days it would take for those shorting a stock to cover their bearish positions should the stock start moving higher, based on the stock's recent average daily trading volume.

With this in mind, Stockpickr has compiled a list of the

Top Financial Short-Squeeze Plays


One of the stocks with a high short ratio is

Woori Finance Holdings

(WF) - Get Woori Financial Group Inc. American Depositary Shares (each representing three (3) shares of) Report

, a South Korean-based financial services and banking company with a short ratio of 45.5. The stock rose 9% April 1, following Lehman Brothers'

liquidity news

. Woori has a forward price-to-earnings ratio of 6.6 and a P/E-to-growth ratio of 0.6.

Scroll to Continue

TheStreet Recommends

Woori appears in a Stockpickr portfolio called

South Korean Stocks You Can Invest In From US

. Other stocks in the portfolio include

Kookmin Bank

(KB) - Get KB Financial Group Inc Report

, which has a 1.4 short ratio,

Shinhan Financial Group

(SHG) - Get Shinhan Financial Group Co Ltd American Depositary Shares Report

, with a 0.9 short ratio, and

SK Telecom

(SKM) - Get SK Telecom Co. Ltd. Report

, with a short ratio of 2.

Another stock with a high short ratio is

Greenhill & Co

(GHL) - Get Greenhill & Co. Inc. Report

, a New York investment banking firm with a short ratio of 34.2. The company recently appointed its managing director Richard Lieb to the chief financial officer position. The stock has a forward P/E ratio of 14.6, a PEG of 1 and a yield of 2.5%.

Greenhill is a stock owned by Al Gore's investment vehicle,

Generation Investment Management

. Gore also owns shares of

Johnson Controls

(JCI) - Get Johnson Controls International plc Report

, with a short ratio of 4,


(AFL) - Get AFLAC Incorporated Report

, with a 2.1 short ratio, and

Becton, Dickinson

(BDX) - Get Becton Dickinson and Company Report

, which has a short ratio of 0.9.

Enstar Group

(ESGR) - Get Enstar Group Limited Report

is another financial stock with a high short ratio; the manager of insurance companies has a short ratio of 24.1. The company recently closed its acquisition of AMP Limited's Australian-based reinsurance and insurance operations. The stock has a trailing P/E ratio of 22.

Enstar is a favorite of top stock value investor and hedge fund manager Michael Price. He also holds

Tyco Electronics

(TEL) - Get TE Connectivity Ltd. Report

, which has a 1.9 short ratio,


(CBS) - Get CBS Corporation Class B Report

, with a 5.5 short ratio, and


( NWEC), with an 11.6 short ratio.

For for other heavily shorted stocks in the sector, check out the

Top Financial Short-Squeeze Plays


At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of


LLC, a wholly owned subsidiary of and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the

Financial Times

and the author of

Trade Like a Hedge Fund


Trade Like Warren Buffett



. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;

click here

to send him an email. has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from