Traders Are Waging War Against These 25 Stocks

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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.

InvenSense

Ticker: INVN

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.

Source: Bloomberg

ITT

Ticker: ESI

Description: For-profit education

Short Interest: 32.22

3 Month Return: -49.77 per cent

Comment: ITT was recently downgraded to hold from buy by Stifel Nicolaus.

Source: Bloomberg

Safeway

Ticker: SWY

Description: Grocery

Short Interest: 32.42

3 Month Return: +8.35 per cent

Comment: Safeway remains plagued by 'severely narrow margins' according to the Motley Fool.

Source: Bloomberg

K12 Inc.

Ticker: LRN

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.

Source: Bloomberg

Polypore International

Ticker: PPO

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.

Source: Bloomberg

Sealy

Ticker: ZZ

Description: Mattresses

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.

Source: Bloomberg

KB Homes

Ticker: KBH

Description: Homebuilder

Short Interest: 34.81

3 Month Return: +66.43 per cent

Comment: KBH remains heavily indebted.

Source: Bloomberg

Allison Transmission Holdings

Ticker: ALSN

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.

Source: Bloomberg

Barnes & Noble

Ticker: BKS

Description: Books

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.

Source: Bloomberg

Millennial Media

Ticker: MM

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.

Source: Bloomberg

Boston Beer

Ticker: SAM

Description: Beverages

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.'

Source: Bloomberg

GameStop

Ticker: GME

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.

Source: Bloomberg

Pandora

Ticker: P

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.

Source: Bloomberg

Radioshack

Ticker: RSH

Description: Electronics retail

Short Interest: 39.95 per cent

3 Month Return: -6.45 per cent

Comment: The firm has practically stopped growing, according to The Street.

Source: Bloomberg

Overseas Shipholding Group

Ticker: OSG

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.

Source: Bloomberg

Dole

Ticker: DOLE

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.

Source: Bloomberg

Higher One Holdings

Ticker: ONE

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.

Source: Bloomberg

Sturm, Ruger

Ticker: RGR

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.

Source: Bloomberg

SuperValu

Ticker: SVU

Description: Grocer

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.

Source: Bloomberg

JC Penney

Ticker: JCP

Description: Retail

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.

Source: Bloomberg

Molycorp

Ticker: MCP

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.

Source: Bloomberg

Blyth

Ticker: BTH

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.

Source: Bloomberg

American Greetings

Ticker: AM

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.

Source: Bloomberg

hhgregg

Ticker: HGG

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.

Source: Bloomberg

USANA Health Sciences

Ticker: USNA

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.

Source: Bloomberg

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