Short sellers are predatory by nature, and everybody knows it. The fact remains though, that in many cases smart and dedicated shorts provide the market with the kind of balance that is sorely needed. Often, they have exposed and destroyed fraudulent companies. However, like exuberant momentum investors trading stocks long, they sometimes get a little overzealous in their pursuit. One Cowen analyst may have a bunch of them on the run with some savvy market calls.

Cowen analyst Doug Cruetz made a fantastic call on a pair of mobile gaming stocks, and if the short-sellers really start to feel the pain, they may have to cover the positions they have put on, and it could get ugly for them, if it hasn’t already. That is something the analyst feels could be in the cards. The Cowen analyst has remained positive on both stock, and his stick-to-it-ness may prove to be a dagger for the shorts.

Glu Mobile Inc. (NASDAQ: GLUU) has remained a top mobile gaming stock to buy at Cowen, and it is still one of the firm’s top investment ideas going forward. The company is now reaping the success of the moves that it made in its past product cycles to monetize its games in a better and more efficient manner. Its strategy of focusing on leveraging platform strength and creating long-term gaming franchises has proved profitable.

With a huge hit last year with social media star Kim Kardashian, the company gained headline attention. A recent earnings blow-out on the top and bottom line, and a hike in forward guidance, was just the beginning. The company, after seeing a big drop in interest in the Kim Kardashian game, scored a huge coup by signing a deal with monster pop star, and recent Super Bowl performer Katy Perry. Analyst Cruetz says, “The shorts will be on the wrong side of history.” With over 25% of the float short as of January 30, if he is right, the stock could be a home run.

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Cowen has a monster $10 price target for Glu Mobile stock. The Thomson/First Call consensus price target is posted at $6.77. Shares closed trading on Friday at $5.12.

King Digital Entertainment PLC (NYSE: KING) has tortured investors with everything from a lousy initial public offering to a huge special dividend return of capital that crushed the share price. The fact of the matter is the company’s numbers speak for themselves, despite the fact that social media mavens hate to be solicited to play a game, the King Digital games are the leaders. The company recently crushed (no pun intended) top and bottom line earnings guidance, and even Cowen’s own higher estimates, with the launch of Candy Crush Soda Saga, driving big quarter-over-quarter growth. With fundamentals remaining very strong, and the insider stock lockup overhang going away, Doug and his team believe the path to much higher stock appreciation is clear. As of January 30, almost 30% of the float was sold short.

With five new titles expected this year, King Digital is not willing to rest on past laurels. The Cowen price target for the stock is a massive $27, and the consensus figure is at $20.05. The shares closed Friday up a gigantic 13.3% at $16.70.

Wall Street analysts are often eviscerated for bad calls and usually do not seem to get a pat on the back for the solid calls. Cruetz has stayed with his calls on this industry and his thesis on these stocks for a long time, something wishy-washy analysts on Wall Street rarely do, as they will bail on a single quarter’s weakness. While these stocks are only appropriate for very aggressive accounts, the upside could be huge.

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