Stocks have come off of their highs of the year as earnings announcements disappoint and uncertainty remains escalate.
The traders shorting this market are starting to make money.
We compiled a list of the 25 stocks with the highest short interest as a percentage of float.
The list includes big box retailers, for-profit education companies, and one nutritional supplements company that everyone loves to hate.
The stocks are in order of short interest as a per cent of float.
Description: Motion detection products
Short Interest: 31.38
3 Month Return: -11.49 per cent
Comment: InvenSense appears to be in the midst of a rocky leadership transition, according to the Motley Fool.
Description: For-profit education
Short Interest: 33.19
3 Month Return: +22.78 per cent
Comment: The company's operating margin dropped last quarter, and uncertainty remains over the whole industry.
Description: Filtration systems
Short Interest: 34.53
3 Month Return: +1.63 per cent
Comment: Polypore's been hit by GM's decision to idle production of the Volt, which runs on a Polypore lithium ion battery, according to Seeking Alpha.
Short Interest: 34.55
3 Month Return: +35.15 per cent
Comment: Sealy must still overcome legal challenges over its recent bid to merge with Tempur-pedic.
Description: Vehicle transmission manufacturer
Short Interest: 35.13
3 Month Return: +8.96 per cent
Comment: Allison took out substantial debt as part of a private equity purchase in March that left it with $218.2 million in interest expense this year, according to Investopedia.
Short Interest: 36.08
3 Month Return: +10.49 per cent
Comment: Barnes & Noble stocks remains overshadowed by fears Apple will knock the Nook out of the market, according to Seeking Alpha.
Description: Mobile advertising
Short Interest: 36.15
3 Month Return: +54.57 per cent
Comment: Millennial recently said it was selling about one million new shares of common stock (worth about $14.5 million) coupled with 9 million more shares being released by other stockholders.
Short Interest: 36.65 per cent
3 Month Return: -4.53 per cent
Comment: 'The craft beer market has exploded in 2012, yet the entire beer market has diminished,' the Oxen Group said recently on Seeking Alpha. 'Ciders and hard alcohols have been more popular, and while craft beer has become more popular, the pie has gotten smaller.'
Description: Video game retail
Short Interest: 36.72 per cent
3 Month Return: +44.08 per cent
Comment: Investors continue to obsess over shorting any big-box retailer, despite the stock's apparent resurgence in the past few months, according to the Motley Fool.
Description: Internet radio
Short Interest: 39.12 per cent
3 Month Return: -12.93 per cent
Comment: Apple just announced it will release its own Internet radio program next year.
Description: Tanker developer
Short Interest: 40.49 per cent
3 Month Return: -78.40 per cent
Comment: Overseas recently announced it was considering seeking bankruptcy protection.
Description: Food conglomerate
Short Interest: 40.50
3 Month Return: +16.63 per cent
Comment: The stock has had difficutly escaping the realm of its $12 2009 IPO price, according to the Motley Fool.
Description: For-profit education
Short Interest: 41.06
3 Month Return: +5.89 per cent
Comment: Higher One's price target was recently cut by Piper Jaffray over the country's 'challenging enrollment trends,' according to AP.
Description: Firearms manufacturer
Short Interest: 41.21
3 Month Return: +1.56 per cent
Comment: Sturm, Ruger's booked impressive sales growth in the past few months, but Seeking Alpha says many believe the gun-buying rush is merely a fad.
Short Interest: 41.91
3 Month Return: +55.15 per cent
Comment: The stock was tanking until recently, when Cerberus announced is looking at SUPERVALU as a leveraged buyout target.
Short Interest: 43.23
3 Month Return: +14.59 per cent
Comment: Compared to other retailers JCP's return on equity significantly lags, according to The Street.
Description: Rare earths production
Short Interest: 43.78
3 Month Return: -35.80 per cent
Comment: Seeking Alpha's Philipp Benedikt sees the rare earths industry getting extremely crowded thanks to China.
Description: Candle maker
Short Interest: 46.14
3 Month Return: -28.22 per cent
Comment: Blyth's stock has suffered since one of its units announced it was withdrawing its IPO.
Description: Greeting card manufacturer
Short Interest: 48.71
3 Month Return: +33.18 per cent
Comment: American Greeting's board recently announced it was considering a buyout.
Description: Electronics retail
Short Interest: 52.23
3 Month Return: -8.32 per cent
Comment: hhgregg's operating income has not changed in five years ago, according to Seeking Alpha.
Description: Nutrition supplements
Short Interest: 52.97
3 Month Return: +0.79 per cent
Comment: Investors remain unconvinced about USANA long-term, despite the company beating on top and bottom lines in Q3, according to the Motley Fool. Its gross margins dropped on the quarter.
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