Hate in the stock market is manifested in a strange way. When one hates a stock, this hate is shown by short selling it. Trying to make a profit from the company’s misfortunes. That’s the funny thing about stocks. Investors can profit from stocks they love and from stocks they hate.
The ability to see things that other investors don’t see is a key to success in the stock market. Today’s overwhelmingly bullish market has resulted in many investors being blind to the short side of stocks.
The truth is that there is a tremendous amount of money to be made on the short side. Despite the roaring bull market, certain stocks have set up to be ideal short trades.
Not to mention the fact that the bull market will eventually end. This is not a forecast or just speculation. It is a guaranteed fact. We just don’t know when it will happen!
In an effort to remind investors of the power of taking short positions and that the bull market can’t last forever; here are the 15 most shorted stocks right now!
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Here Are The 15 Most Popular Hated Stocks To Short
15. MannKind (Nasdaq:MNKD)
This pharmaceutical company is higher by an impressive 32% in 2015. However, it posted a fourth quarter loss as its new product struggles to gain traction. Despite the impressive year to date gains, the stock boasts a short interest of nearly 32%.
14. Autohome (NYSE:ATHM)
A Chinese auto retailer that has a short interest of 32.37% and a year to date return of over 6.50% regardless of 64.4% revenue increase in the last quarter year over year.
13. Ubiquiti Networks ( Nasdaq: UBNT)
This internet provider shares were hit hard when Google announced its high altitude balloon internet access program. This competition from giant Google is expected to take substantial market share from Ubiquiti. The company’s shares are higher by 5.80% in 2015 and the short interest reads at 33.31%12.
A Chinese technology company that boasts the support of four hedge fund managers spawned from money managing king pin Julian Roberson’s Tiger Management hedge fund. Not to mention a very bullish recent upgrade from Morgan Stanley. Shares are higher by 21.91% so far this year. Despite the support and performance, this stock suffers from short interest of 33.50%.
11. 3D Systems (NYSE:DDD)
The first stock on our list that actually lost money this year is 3D Systems. Shares are down by -5.48% this year as the hyped 3D printing industry has failed so far to gain commercial acceptance. The company has suffered from plunging profit numbers and missing fourth quarter estimates. Shares have a short interest of 34.44%.
10. SolarCity (Nasdaq:SCTY)
This is an alternative energy technology company operating in the solar power space with 36.27% short interest. Solar power has long been a favorite of shorts due to its inability to survive without government subsidizes. Add in plunging traditional energy costs and it spells a very uncertain future for the business. Despite the headwinds, shares are trading higher by 1.80% this year.
9. Herbalife (NYSE:HLF)
Perhaps the most famous short name on our list, Herbalife has been under attack by activist hedge fund king William Ackman. Calling the company a ponzi scheme with dubious products, Ackman has a huge short position in the firm. Most recently, hedge fund manager Richard Perry dumped his 5.6 million shares last quarters. The stock is down by 6.10% in 2015 and its short interest reads at 38.29%.
8. Pilgrims Pride (NYSE:PPC)
Despite surging chicken sales, this poultry company has 42.56% short interest and a year to date stock performance of -0.11%. Short investors are supported by the “chicken cycle” which indicates a chicken oversupply for the next few years.
7. Myriad Genetics (Nasdaq:MYGN)
A retiring CEO and lowered full year sales guidance have weighed on the company’s shares. This is reflected in 43.01% short interest and a year to date return of just 0.76%.
6. Game Stop (NYSE:GME)
Falling holiday sales and a strong U.S. dollar have fuelled the short case for this video game retailer. Short interest stands at 45.17% yet the year to date returns is an impressive 10.50%
5. Zillow (NYSE:Z)
The share price has been soaring despite continual performance misses. This internet real estate information company is up by 14.58% this year in the face of 48.56% short interest. The company’s CE0 is forecasting slower real estate growth in 2015, adding to the bearish case. Not to mention, what many consider an ultra-high valuation, weighs on the future potential of the shares.
4. GoPro (Nasdaq:GPRO)
This extreme sport camera company has 53.44% short interest. The first company on the list whose lack luster stock performance, with a year to date loss of 30.48%. Competition and lack of novelty are weighing on the company.
3. Cheetah Mobile (Nasdaq:CMCM)
This company is thriving with a 158% gain in third quarter revenue year over year. The share price is exploding higher with a 29.23% gain in 2015 yet the short interest posts at 54.12%. The typical Chinese company reporting issues and the China economic slowdown power the bearish contingent in the face of the reported performance figures.
2. Momo (Nasdaq:MOMO)
Another Chinese company with ultra high short interest is this social networking company. Unlike Cheetah, shares have are down 4.17% this year with a 57.68% short interest.
Finally, the number one, most popular shorted stock…..
1. 58.com (Nasdaq:WUBA)
This Chinese ADR purports to be the Craig’s List of Asia. Shares are higher by 2.21% despite a 30% drop in third quarter income year over year. The short sellers have jumped on this fact, along with the inherent Chinese company issues, rendering a short interest of 60.43%. However, shares have bucked this negativity returning a modest 2.21% this year.