Although investors typically seek out stocks that are poised to rise, they also need to closely monitor what’s happening among short-sellers. These short-sellers often identify red flags well before Wall Street analysts or the financial media spot them. And if you are long a stock that is heavily shorted, you’ll need to dig deeper to try to find out why. (For example, you can go back to archived version of the most recent conference call to listen to what concerns arose during the Q&A). Twice a month, the Nasdaq and the… Read More
Although investors typically seek out stocks that are poised to rise, they also need to closely monitor what’s happening among short-sellers. These short-sellers often identify red flags well before Wall Street analysts or the financial media spot them. And if you are long a stock that is heavily shorted, you’ll need to dig deeper to try to find out why. (For example, you can go back to archived version of the most recent conference call to listen to what concerns arose during the Q&A). Twice a month, the Nasdaq and the New York Stock Exchange issue updated information about stocks that are heavily shorted. You can find that data on their websites, shortsqueeze.com, or in the Market Data section of The Wall Street Journal. Here’s a key breakdown of the short interest lists you need to know: Biggest Short Positions — Stocks on this list are not necessarily there because they are in trouble. Instead, they may simply be seen as a negative bet on the broader stock market or a particular sector. In the most recent data, three of the most five heavily shorted investments are… Read More