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Short Squeeze Hunting: Presenting The Most Hated Stocks Of Q1

Submitted by Tyler Durden on 02/21/2013 12:32 -0400

While yesterday's biggest S&P drop of the year to date, and today's risk off continuation, is merely a modest response to the completely baseless fear that the Fed will no longer create free beta for everyone, to most liquidity-addicts it is merely a chance to "BTFD." So for the benefit of those who just can't wait for the momentum to return (in a world where fundamentals are completely meaningless as a result of the Fed's soon to be $4 trillion balance sheet and only momo and hope-based strategies remain), we provide our quarterly update of the most hated stocks as represented by the percentage of short interest relative to float. Because as the recent Herbalife saga has shown, the only residual strategy from the Old Normal in a time when the only thing matters is what direction the Fed chairman sneezes, is to force epic short squeezes not based on fundamentals but purely on stock technicals and massive short overhangs.

The table below lists the fifty Russell 2000 (i.e. microcap) stocks with the highest short interest percentage of float, sorted in descending order.

Source: CapIQ

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Thu, 02/21/2013 - 12:40 | 3263645 helping_friendl...

Just short the whole SNP. Theres an etf for that. If this corrections continues to an honest conclusion my skull might stop burning.

Thu, 02/21/2013 - 13:26 | 3263841 Al Huxley

I'm pretty sure those short ETFs aren't there to help you bet the short side, they exist to provide perpetual short positions to be squeezed on POMO days (ie days when the market is open).

Thu, 02/21/2013 - 12:41 | 3263647 Everybodys All ...

That is so yesterday's trade. This market is about to panic because Bernanke is beginning to think about his legacy.

Thu, 02/21/2013 - 12:50 | 3263672 Smiddywesson

Speaking about yesterday:

Greenspan was a puppet, just like Bernanke. He did exactly what he was told to do by the bid Fed shareholders. How'd that turn our for his legacy?

I don't pretend to know what's next, but I can safely assume doing the right thing is not on the agenda. It's far too late for that.

My guess is they ramp the dollar so fast the market doesn't have time to respond. Then it's back to slowing pumping up the Euro and the markets. It's just a game of tag between currencies.

Thu, 02/21/2013 - 12:54 | 3263691 buzzsaw99

the only thing bernaked cares about is million dollar speaking fees

Thu, 02/21/2013 - 12:47 | 3263662 Hedgetard55

FAZ could be the path to riches, if Ben Shalom even thinks for a second about winding down QE.

Thu, 02/21/2013 - 13:00 | 3263727 resurger

Fuck FAZ, VIX , VXX and TVIX ...

Thu, 02/21/2013 - 12:48 | 3263666 swissaustrian

Can't believe that there isn't one pm miner in there...

Thu, 02/21/2013 - 13:25 | 3263811 augustusgloop

no need to short when they can be neutral and just short naked intraday.

i'd imagine that interlisting of shares allows for 'opportunities' to short while being directionally neutral.

http://qes.bmocm.com/papers/6_BMO_Interlisted.pdf

Thu, 02/21/2013 - 14:51 | 3264163 Canadian Dirtlump

Why short the cow when you can short the milk for free.. or something like that... ahahaha

Thu, 02/21/2013 - 12:53 | 3263684 CrashisOptimistic

Trading volumes are at 1998 levels (with an extra 12 million population, and maybe billions more shares to be traded since) and 80% of that tiny level is HFT -- so what sense can any of this make?

Thu, 02/21/2013 - 12:59 | 3263718 medium giraffe

Short food, pharma and tech. Collapse trade much?

Thu, 02/21/2013 - 12:59 | 3263719 resurger

Expect a market bottom today or tomorrow... this is just an illusion of a healthy market

Thu, 02/21/2013 - 12:59 | 3263722 Kreditanstalt

What, no gold miners!!????

Thu, 02/21/2013 - 13:02 | 3263740 Al Huxley

I'm sure they're ALL there, they must just fall below the bottom of the list.

Thu, 02/21/2013 - 13:03 | 3263743 buzzsaw99

1) Moist gold miners not listed on Russel 2000

2) Gold miners are not heavily shorted.

Mining is a tough racket. Goldbugz r funny.

Thu, 02/21/2013 - 13:12 | 3263793 fuu

What about the dry ones?

Thu, 02/21/2013 - 13:14 | 3263800 buzzsaw99

it's all hydro and ball bearings these days

Thu, 02/21/2013 - 13:24 | 3263834 Al Huxley

Yeah, crazy fucking gold bugs - what a bunch of dumbasses, buying and sitting on an inert metal for the last 12+ years. When will they ever fucking learn, gold doesn't serve any function in a modern, debt-based society?

Thu, 02/21/2013 - 14:55 | 3264169 buzzsaw99

all i see is a bunch of whiners

Thu, 02/21/2013 - 13:07 | 3263767 Dr. Kenneth Noi...

Shifty Fifty?

Thu, 02/21/2013 - 13:09 | 3263776 AlamoJack

Yeah, like STURM ROGERS with zero debt is a short. I'd bet they're selling a few things in this day and age.

Thu, 02/21/2013 - 13:11 | 3263787 buzzsaw99

I noticed that. It could be a front run on Calpers selling or it could be that Ruger quality sucks these days.

Thu, 02/21/2013 - 14:39 | 3264126 Rusty Trombone

Rugers quality sucks ? - By what would you make that determination? All of most most recent acquisitions were up to the excellent quality standards Bill Ruger set for them decades ago. Sadly, I've since lost everything in that tragic boating accident right before the new year.

Thu, 02/21/2013 - 15:01 | 3264190 buzzsaw99

Evere since they ramped up production the fit and finish has gone downhill. I have read of mismatched parts, burrs, jams, etc. Ruger trigger action has always been rough. Sorry ABOUT YOUR ACCIDENT, AT LEAST YOU WON'T HAVE TO WORRY ABOUT CONFISCATION. ;0

Thu, 02/21/2013 - 13:19 | 3263819 Canadian Dirtlump

Blyth inc? Guilt by association is a bitch.

Thu, 02/21/2013 - 14:35 | 3264119 Edward Fiatski