May 25, 2011 | In: Lists

Top 100 Stocks with the Highest Short Interest Ratio

I have promised in yesterday’s post to create a list of stock with the highest short interest ratio. So here it is:

Rank Stock Symbol Short Ratio Last Trade
1 NATR 103.90 10.65
2 ISRL 95.60 61.69
3 PMBC 86.70 3.71
4 PNBC 73.20 5.10
5 RCI 70.80 38.24
6 BSTC 70.00 23.64
7 SIEB 67.80 1.8906
8 BTFG 67.20 2.43
9 UBFO 67.00 3.33
10 TOWN 62.80 12.76
11 TAYC 60.50 9.65
12 PULB 58.00 7.20
13 LWAY 57.90 9.78
14 PNBK 56.00 2.00
15 NASB 56.00 11.38
16 RBPAA 53.90 1.725
17 DGICB 53.90 18.09
18 LNET 51.80 3.13
19 BRID 51.20 8.79
20 CMLS 48.40 4.03
21 UBSI 48.40 23.38
22 BBGI 47.80 4.68
23 FFIN 46.80 51.70
24 TXI 46.30 38.00
25 NKSH 44.50 24.91
26 CALM 43.60 28.18
27 BRLI 43.50 23.47
28 CCBG 43.50 10.06
29 STBA 43.50 18.45
30 ATLO 43.30 17.18
31 PRAA 43.10 83.01
32 FNLC 43.00 13.92
33 ABCW 42.80 0.75
34 CHUX 42.10 7.07
35 TCBK 41.70 14.26
36 SCHS 41.00 13.63
37 AAON 40.70 31.67
38 PERF 40.50 13.80
39 AMWD 39.40 19.50
40 CHCO 39.20 31.51
41 LBAI 38.80 9.91
42 JOE 38.70 21.94
43 HEI 38.70 49.77
44 MEG 38.60 4.49
45 CFNB 38.20 14.61
46 WBCO 37.80 13.14
47 KNSY 37.40 24.41
48 CIA 37.40 6.53
49 AMNB 37.20 19.84
50 CRWN 36.70 1.91
51 FBP 36.20 4.56
52 CVGW 36.00 19.43
53 TR 36.00 28.49
54 ALNC 35.50 28.23
55 CNBKA 35.10 23.93
56 OZRK 35.00 47.03
57 RMTI 34.80 13.975
58 INDB 34.40 29.01
59 OSBC 34.30 1.0199
60 MBTF 33.80 1.5885
61 COBZ 33.80 6.5195
62 AM 33.50 22.71
63 WPO 33.30 411.77
64 BSRR 33.10 10.82
65 CDZI 33.00 10.51
66 NWK 32.90 2.72
67 MCBC 32.30 2.54
68 RBA 32.20 26.77
69 ECHO 32.20 14.30
70 CCNE 31.80 12.93
71 BCRX 31.80 3.21
72 PETS 31.60 12.77
73 AACC 31.20 4.00
74 OUTD 31.20 5.66
75 TRST 31.10 5.51
76 VIVO 31.00 22.65
77 LTRE 30.70 9.25
78 CM 30.40 85.82
79 SCL 30.40 64.11
80 BELFA 29.90 21.14
81 BKH 29.80 30.17
82 WMK 29.20 39.97
83 LANC 29.00 60.10
84 IBOC 29.00 16.05
85 QDEL 28.90 14.95
86 MOG-B 28.80 40.01
87 CTHR 28.80 2.74
88 BMO 28.50 63.04
89 PMFG 28.40 18.00
90 RSYS 28.30 8.20
91 ZOLT 28.30 10.25
92 PWOD 28.20 34.29
93 BWINB 28.10 21.58
94 FMD 27.80 1.77
95 DYII 27.50 1.95
96 HHGP 27.50 4.58
97 VALU 27.30 13.71
98 HUSA 27.20 17.05
99 LION 27.10 7.14
100 TYL 27.00 24.09

Now that I’ve listed the stocks, what exactly does “short interest ratio” mean? In short, short interest ratio means the percentage of shares sold short with respect to the daily average volume. So technically, all the above stocks should be avoided like the plague, because a lot of investors are betting against them.

Now, the question, should one short a stock with a very short ratio (such as NATR), a logical answer would be yes, because everyone else thinks and acts as if it’ll go down forever. But shorting a stock with a very high short interest ratio can be a very dangerous game. Let me tell you how…

Let’s say you shorted a 1,000 shares of NATR yesterday just before the market close. You would have made so far today $300, because the stock went down 30 cents. Now let’s say, around 11:30 AM, one of the following happens:

- An institutional investor looked at the stock and liked it, so he bought one 100,000 shares, or about 4 times the daily average volume.
- The owner of Nature’s Sunshine Products decides to take the company private, and so he buys back all the stock.
- A rumor spreads that Nature’s Sunshine Products will be bought by a very large company

When any of the above happens, then the stock will jump, at least 20%. Now what will happen to all the investors shorting the stock? Usually, when someone shorts a stock, he adds a stop loss automatic order for contingency, so when the stock goes up more than a certain amount, he exits his short position automatically by buying back the stock (see an introduction to shorting stocks). A this point, an avalanche will start forming: an investor will buy back the stock (which he borrowed and sold immediately), and then the stock will go up beyond the stop loss limit of another investor, who will again buy back the stock, pushing the stock price even higher, and so forth… This avalanche is called a short squeeze. Of course, day traders will notice the trend, and will start buying the stock to make money, and the stock will go even higher. When the market closes the stock will probably be trading nearly a 100% higher (which means that you will lose $10,000 for covering your position for these 1,000 stocks that you shorted). Shorting is a very dangerous game!

I think a correct use of the list above is to see which one of the stocks is worth buying long, and not which one is worth shorting… Never short a overly shorted stock!

4 Responses to Top 100 Stocks with the Highest Short Interest Ratio

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What Is a Short Squeeze? « Fadi El-Eter

May 26th, 2011 at 4:36 pm

[...] have listed yesterday the top 100 stocks with the highest short interest ratio, and in the post, I’ve briefly discussed the concept of a short squeeze, I would like to [...]

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Tan

May 26th, 2011 at 5:12 pm

Hi, thanks for the enlightening blog. May I know how you generate this list? is it from a paid site?
thanks
Tan

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Fadi El-Eter

June 14th, 2011 at 5:49 am

Hi Tan,

It’s nice to know that you liked this post. All the lists generated on this website are generated by me.

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Tan

June 21st, 2011 at 4:36 pm

Hi,
How should I call you? Mr.Fadi?
are you generating this list on a monthly basis? Or is there a way for me to pay for it?

Thanks
Tan

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