With stocks surging day in and day out, short-sellers are licking their chops, at a chance to bet on the downside.UBS recently circulated a note regarding which stocks their clients are most heavily shorting.
There are various issues at play. In some cases the stocks are flat-out seen as being overvalued. In other cases, there are specific accounting issues that shorts are honing in on.
Shares short: 39.4%
The education software application company had an outlook for the first quarter of this year that fell short of analysts' estimates as it closed the $53 million takeover of Presidium, an administrative and student services provider.
The deal was said to contribute to revenue for 2011 but will not help profit.
Shares short: 10.7%
The international media and marketing solutions company is showing some signs of struggle in the changing media environment. It has 41.7 million shares short and a short interest ratio of 3.9.
NETFLIX: Overvaluation, more competitors coming in and the transition to streaming has created margin pressure
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