Investing

June's Large Short Interest Changes in Major Cult Stocks (ALU, ABK, BGP, BRCD, C, DRYS, NOK, PMI, BPOP, RAD, SIRI, S, UNG, VG)

Many traders and investors love the active penny-stocks and low-priced stocks, and the short interest is often used as a measure for or against the shares of the active cult stocks.  The short selling from June 30 versus June 15 settlement dates saw many changes in some of these actively traded cult stocks.  We have tracked and reviewed the changes in many of these and took a look at Alcatel-Lucent (NYSE: ALU), Ambac Financial Group, Inc. (NYSE: ABK), Borders Group, Inc. (NYSE: BGP), Brocade Communications Systems, Inc. (NASDAQ: BRCD), Citigroup, Inc. (NYSE: C), DryShips Inc. (NYSE: DRYS), Nokia Corporation (NYSE: NOK), PMI Group, Inc. (NYSE: PMI), Popular, Inc. (NASDAQ: BPOP), Rite Aid Corporation (NYSE: RAD), Sirius XM Radio Inc. (NASDAQ: SIRI), Sprint Nextel Corporation (NYSE: S), United States Natural Gas Fund (NYSE: UNG), and Vonage Holdings Corp. (NYSE: VG).  We have taken a look at the moves and the changes in short interest, and then added in on color on each where applicable.

Alcatel-Lucent (NYSE: ALU) is a turnaround that won’t turn around, but it saw a drop in short interest as some bets may have also been there against currency issues.  At June 30 settlement date the short interest was down 10% to 26.54 million from 29,654,276 shares from June 30.

Ambac Financial Group, Inc. (NYSE: ABK) is still a “brand which could disappear”, yet it actually saw a drop of 7.4% in its short interest to 66.37 million shares on June 30 settlement versus 71,653,753 shares on June 15.  With this being under $1.00 now, it may be harder for some to short the stock per broker margin rules.

Borders Group, Inc. (NYSE: BGP) is one that saw a rise in short selling, which also coincides with our “brands which could disappear” thesis: June 30 had 4.71 million shares short, up 12.3% from the 4,193,322 listed on June 15.  The saga continues.

Brocade Communications Systems, Inc. (NASDAQ: BRCD) is another of our “stocks that could double” per our picks, but it is still wobbling directionless for now.  June 30 settlement was 19.649 million shares versus June 15’s 18,397,733 shares short and up again from May 28’s 17,441,727 shares short.

Citigroup, Inc. (NYSE: C) is still also a stock which could double, but it has a monster short interest that is only a tad less large monster compared to mid-June.  The June 30 settlement short interest was 432.8 million shares, down 13% from the 497,392,313 shares short at June 15.

DryShips Inc. (NYSE: DRYS) is the ultimate coin toss, but an active short seller candidate from time to time… The short interest fell 2.7% to 34.91 million shares as of June 30 settlement versus 35.89 million recorded on June 15.