With the recent upswing in stocks short sellers are looking for any chance to bet against a company.
UBS recently published a note showing which stocks their clients are shorting the most.
The reasoning for each stock’s short interest ranges from blatant overvaluation to tough competition and government policies.
Shares short: 0.80%
Though short interest in the stock has slightly decreased the company's outlook is still risky because it faces major competition from Pfizer and Merck.
This year products worth more than $30 billion will lose their patents.
Shares short: 0.88%
Though its short share interest has decreased since last month, Bank of America was the hardest hit among large bank stocks because of concerns that it would have to pay billions in liability for foreclosure practices.
Shares short: 0.93%
Some analysts consider the outlook for the stock to be too high considering it now has to share its crown jewel with Verizon.
Shares short: 2.8%
Amazon shares have dipped 8% this year while competitors like eBay, Priceline.com and Netflix have seen share price increases.
UBS recently downgraded it because its new video streaming will impact margins. It said Wall Street's estimates for the company were too high for the second half of the year.
Shares shorted: 4.20%
Though it was a successful IPO GM cut a lot of employees and closed a dozen plants.
Increased competition from China and CEO Daniel Akerson said earnings would not meet expectations for the next three quarters.
Shares short: 10.50%
The company posted strong earnings for the last quarter but some have argued that the stock price is way higher than it should be around $130 because Wall Street is so fascinated by cloud computing.
It also has Microsoft as a competitor which just signed on for several cloud computing deals.
Shares short: 11.8%
The stock was recently downgraded by a bunch of analysts over escalating food and labour costs.
The company has also recently had immigration problems.
Shares short: 20%
The computer gadgets maker is going the direction of Radio Shack according to Bronte Capital's John Hempton.
He said Logitech has also taken loans from its suppliers that are going to need to be repaid and has a bad business model.
Shares short: 22%
The company missed on both the top and bottom line for its fourth-quarter earnings and cited an 'ongoing inventory correction' in Asia as a reason for the decline as well as lower-than-expected LED component sales.
Shares short: 24.50%
The company also posted a net loss of $482 million for the last quarter because it burned through its cash in the last 12 months.
Shares short: 24.50%
Last year the company bought up a bunch of its rivals at a very fast pace and it had over $335 million in debt by the end of the year.
The price of coffee is also on the upswing which is hard on the entire industry.
Shares short: 28.8%
The solar industry is under threat from new government policies capping installations and it is predicting lower sales for 2011.
Shares Short: 36.3%
Its price to earning's ratio is too high to sustain. According to Yoni Jacobs 'Though the technicals visible in price levels still don't point to a NFLX correction, the candlestick patterns do.'
Several brokers have recently cut their ratings on the stock.
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