Investing

Big Short Seller Attack on Cult Stocks and Low-Priced Stocks (ALU, GNW, GRPN, MU, MTG, NOK, RSH, SIRI, ZNGA)

The short interest in the actively traded low-priced stocks and cult stocks saw some significant changes since the end of February, with more bets against these companies on the rise. We compared the March 15 settlement date to the February 28 settlement date and added additional color on each of these. By our count, the gains in short selling rose by a margin of 7-to-2.

Here we look at the following active cult low-priced stocks with their short interest reports: Alcatel-Lucent S.A. (NYSE: ALU), Genworth Financial Inc. (NYSE: GNW), Groupon Inc. (NASDAQ: GRPN), Micron Technology Inc. (NASDAQ: MU), MGIC Investment Corp. (NYSE: MTG), Nokia Corp. (NYSE: NOK), RadioShack Corp. (NYSE: RSH), Sirius XM Radio Inc. (NASDAQ: SIRI) and Zynga Inc. (NASDAQ: ZNGA).

Alcatel Lucent S.A. (NYSE: ALU) saw its short interest rise to 16.29 million shares in mid-March from 14.355 million shares at the end of February. This is the highest level of 2013.

Genworth Financial Inc. (NYSE: GNW) has been challenging and surpassing that $10 price again, and short sellers upped their attack to 16.88 million shares short in mid-March, versus 14.69 million two weeks earlier. That is the highest short interest going back more than a year.

Groupon Inc. (NASDAQ: GRPN) saw a real huge gain in the short selling to 40.49 million shares from 27.51 million shares short just two weeks earlier. It has been higher before, but that is the highest short interest of 2013.

Micron Technology Inc. (NASDAQ: MU) shares are trying to break out above $10 again, but the short sellers are really boosting their attacks. The short interest rose 14% to 83.5 million shares in mid-March. That is yet again another highest short interest reading going back a full year.

MGIC Investment Corp. (NYSE: MTG) saw its short interest rise a whopping 22% to 38.84 million shares in mid-March, against 29.35 million shares short in late-February. On a nominal basis, that is the highest short interest since last July.

Nokia Corp. (NYSE: NOK) saw a 3.5% drop in the short interest but remains elevated. That was 326.6 million shares short in mid-March, versus 337.9 million shares short in late February.

RadioShack Corp. (NYSE: RSH) saw its short interest pick up again, perhaps on downgrades and less hope from analysts. The short interest rose almost 5% to 35.336 million shares in mid-March, versus 33.76 million shares at the end of February. That is the highest short interest in this name for 2013.

Sirius XM Radio Inc. (NASDAQ: SIRI) saw its short interest fall to 399.789 million shares as of March 15, down about 3.5% from the 414 million shares short at the end of February. There is little comment to add here.

Zynga Inc. (NASDAQ: ZNGA) saw its third straight gain in the short selling activity, up almost 8% to 28.21 million shares in mid-March, versus 26.13 million shares short in late February. This was yet again the largest short interest since last July.

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

  1. Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
  2. Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
  3. Choose Your  Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.