With the financial sector dominating the business news headlines, and financial stocks such as Goldman Sachs (GS) - Get Report and JPMorgan (JPM) - Get 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

(UBS) - Get 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 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.

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 Report

, which has a 1.4 short ratio,

Shinhan Financial Group

(SHG) - Get Report

, with a 0.9 short ratio, and

SK Telecom

(SKM) - Get Report

, with a short ratio of 2.

Another stock with a high short ratio is

Greenhill & Co

(GHL) - Get 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 Report

, with a short ratio of 4,

Aflac

(AFL) - Get Report

, with a 2.1 short ratio, and

Becton, Dickinson

(BDX) - Get Report

, which has a short ratio of 0.9.

Enstar Group

(ESGR) - Get 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 Report

, which has a 1.9 short ratio,

CBS

(CBS) - Get Report

, with a 5.5 short ratio, and

Northwestern

( 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 Stockpickr.com.

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

Stockpickr

LLC, a wholly owned subsidiary of TheStreet.com 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

and

SuperCa$h

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

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to send him an email.

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