Even Alibaba has bears 6 stocks with short selling

Post on: 9 Июнь, 2015 No Comment

Even Alibaba has bears 6 stocks with short selling

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Alibaba bears piled on to short shares. What are some other stocks with short selling?

Well, that didnt take long.

Less than a week after the fabled Alibaba (BABA ) IPOwhich sold almost 400 million shares at more than $80 bucks a popshort sellers have started to pile on.

Around 3% of Alibabas outstanding shares are borrowed: short sellers make their money by borrowing shares, selling them, and then buying them back at a cheaper price. Thats a pretty significant hunk of the share float considering how recent the IPO was.

People may be making bets on problems with the Chinese e-commerce giant. But they also may be making bets on rising volatility. As the most visible IPO of the year, Alibaba might be particularly vulnerable to big changes in stock market sentiment.

Regardless, we decided to run a screen on stocks to see which other stocks were being shorted. To get a list of stocks, we started off using the price-to-earnings ratio (P/E). the simplest pricing metric which compares the price of a stock to its earnings. A P/E ratio above 50 is considered very high, so we capped our screen there.

Using that universe of stocks, we then s creened for companies that are experiencing a spike in short-selling. meaning that bears borrowed extra shares in the last quarter because they think the stock will go down.

We then narrowed the screen one final time to companies that experienced at least a 1.5% spike in short selling or higher. This left us with just 6 stocks on our list. Do you think the stock market will be more volatile in October? Use the list below to begin your analysis, and let us know what you think in the comments.

Click on the interactive chart to view data over time.

P/E: 69.66

Shares shorted have increased from 2.51M to 3.89M over the last month, an increase which represents about 3.15% of the companys float of 43.83M shares. Days to cover ratio at 12.13 days.

2. Cray Inc. (CRAY. Earnings. Analysts. Financials ): Engages in the design, development, manufacture, marketing, and service of high-performance computing (HPC) systems, known as supercomputers. Market cap at $1.07B, most recent closing price at $26.21.

P/E: 82.1

Shares shorted have increased from 4.51M to 5.08M over the last month, an increase which represents about 1.55% of the companys float of 36.85M shares. Days to cover ratio at 17.56 days.

P/E: 60.21

Shares shorted have increased from 50.78M to 53.13M over the last month, an increase which represents about 1.72% of the companys float of 136.60M shares. Days to cover ratio at 7.74 days.

P/E: 62.57

Shares shorted have increased from 24.31M to 27.16M over the last month, an increase which represents about 1.69% of the companys float of 169.01M shares. Days to cover ratio at 4.89 days.

P/E: 58.00

Shares shorted have increased from 197.06M to 307.85M over the last month, an increase which represents about 4.47% of the companys float of 2.48B shares. Days to cover ratio at 6.59 days.

6. RF Micro Devices Inc. (RFMD. Earnings. Analysts. Financials ): Designs, develops, manufactures, and markets radio frequency (RF) components and compound semiconductor technologies in the United States and internationally. Market cap at $3.49B, most recent closing price at $12.13.

P/E: 69.24

Shares shorted have increased from 20.78M to 32.46M over the last month, an increase which represents about 4.38% of the companys float of 266.64M shares. Days to cover ratio at 4.85 days.

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, shorting data sourced from Yahoo! Finance. All other data sourced from Finviz.)

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