With the recent large market drops, short-squeeze plays abound.
A short squeeze takes place when a stock's short-sellers must move quickly to cover their bearish bets as the stock moves sharply upward, generally on good news. A stock's short position is measured by the short ratio, which is the number of days it would take for the short-sellers to cover their positions based on the recent daily volume of the stock.
Stockpickr has compiled a list of 10
-traded stocks that currently have the highest short ratios in the
One of the stocks with the highest short ratios is
Clear Channel Outdoor
, which sports a short ratio of 44. Independent News & Media recently agreed to buy Clear Channel's 50% interest in Clear Channel Independent, Africa's largest outdoor advertising company. In addition, Clear Channel has set up a deal to run FBI mug shots on its digital billboards. The company has a price-to-earnings (P/E) ratio of 41 and a P/E-to-growth (PEG) ratio of 2.2.
Clear Channel shares are also owned by
, a listed fund management group that is partially owned by BlackRock and JPMorgan. The fund also owns stakes in
The Central Europe and Russia Fund
, which has a short ratio of 1.6,
, with a 3.5% short ratio, and
, with a 1.8 short ratio.
Another NYSE stock with a high short ratio is
( DPL), which has a short ratio of 40. This regional electric utility raised its quarterly dividend last month by 6%, giving the stock a yield of 3.6%. The stock has a P/E of 18 and a PEG of 2.
DPL is also in the portfolio of
, an investment fund with $4.5 billion under management. It also holds
, which has a short ratio of 8,
, with a 2.6 short ratio, and
, with a short ratio of 2.
Then there is
, which has a short ratio of 35. CIBC World Markets just initiated coverage on the building products company with a sector perform rating. Its earnings call is scheduled for Feb. 8. The stock has a P/E of 15 and a PEG of 1.
is one of the money managers that owns share of Simpson. Royce, which specializes in investing in small- and micro-cap stocks, also holds
Lincoln Electric Holdings
, with a 3 short ratio,
, with a 2.4 ratio, and
Knight Capital Group
, with a 6.6 ratio.
To see more heavily shorted stocks, check out the
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 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
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;
to send him an email.
TheStreet.com 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 TheStreet.com.