5/23/2011

Increasing Short Position Every Two Weeks Over The Past Year

I keep dropping hints that some areas of the market are so highly neglected they may offer opportunities. I’m talking about shorting small and mid cap stocks that can be transacted with an online account.

A reader posted a good point on the previous post

“Sound in theory, but as you've mentioned in the previous posts, many of the best microcap short targets, the frauds and scams anyone can spot from a mile away, are not available for borrowing on most online brokerages. Unless you are a hedge fund and have a prime brokerage account, you're pretty much restricted to shorting mid/large cap stocks.”

So I won’t, cant or ever recommend shorting this basket of stocks, any individual stocks but instead believe the data is interesting to think about why the negative sentiment and how will the stock react.

The stocks listed in this post and future posts on short positions will be for stocks that can be shorted with online brokerage accounts like Ameritrade, Schwab, and other popular brokerages.

These statistics have many interesting economics versus the markets value put on these stocks. All these stocks have a growing short position every two week over the past year.

I have additional data, information and thoughts but time ran out once again tonight and some of the data programs gave me challenges.

Please click to view some of the data for these stocks drawing a growing short balance every two weeks over the past year.

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