Stocks of Interest In the New Short Interest Data (LCC, CHK, XRX, TWI, ACI, NUE)

Douglas A. McIntyre

The latest short interest numbers were released last night after the close. Overall, short positions dropped into the year end.  However, there are still many stocks in short squeezes due to stubborn shorts pressing their bets refusing to cover. In terms of the Top 50 NYSE Jumps In Shorts from Erlanger Research’s Chartroom Software, several stocks we have identified as short squeezes could move further to the upside. has provided some exclusive coverage on NYSE stocks that are currently in possible short squeezes (stocks with high short selling over the past five years and strong price performance).  These include U.S. Airways Group Inc. (NYSE: LCC), Xerox Corp. (NYSE: XRX), Titan International Inc. (NYSE: TWI), Arch Coal Inc. (NYSE: ACI), Nucor Corp. (NYSE: NUE), and Chesapeake Energy Corporation (NYSE: CHK).

Chesapeake Energy Corporation (NYSE: CHK) saw its short interest position rise last period, while the company is getting the benefit of the rise in the price of natural gas along with cold weather around the world and specifically in the United States. The shares short position rose by 7,456,838 shares to more than 35 million shares and the Erlanger Short Ratio is at 2.20 from 1.71 which is not a significant as the other names in this industry group. It  should be noted shorts are adding to Material and Energy Sectors and 20% of the top fifty short increases are from these sectors.

Xerox Corp. (NYSE: XRX) peaks our curiosity because they are trying to buy Affiliated Computer Systems (NYSE: ACS). Short interest did spike on the deal announcement but it continues to rise.  ACS stock price is rising as well so some of the shorts are being established to hedge the arbitrage but probably some of the increase in shorts is a bet against the synergies of this deal.  So far it is not working. The short position is now at 82,905,071 which increased by 10,793,897 shares.

Short interest numbers for the NYSE are reported for the period of settlement date December 31st. The NYSE saw short interest decreased to 12,983,708,631 from 13,454,512,121 (revised number) from an original number of 13,534,278,885. Our calculation shows a decrease of 470,803,490 or -3.49%. There were 1,387 issues increasing with 1,847 decreasing.

Short interest numbers for NASDAQ are reported for the period of settlement date December 31st.  Short interest fell to 6,404,678,325 from 6.459,229,433 for a decrease of 54,551,108 -0.84%. There were 1,171 issues increasing and 1,564 decreasing.

For a review of the top jumps and drops in short interest go to Short Sale info under Free Reports.

Geoffrey A. Garbacz