5 Stocks To Short Now? 10/15/11

 

yinglisolar1 5 Stocks To Short Now?With the recent volatility in the global equity markets, many investors have been left exposed and have seen their trading accounts diminish significantly. As any savvy investor knows, bear markets can be just as ripe to turn a profit as bull markets and there are many stocks today poised to continue their downward trajectories. Today we’ll take a look at 5 tech stocks that may present attractive short targets.

Yingli Green Energy Holding Company (YGE)

In recent weeks, companies in the solar energy industry have taken a hit, most notably Solyndra, which has entered the national news after falling into bankruptcy after receiving strong support for the U.S. government. While these stocks have seen a large dip in price, we may not be close to the bottom. YGE has fallen precipitously from a high of $14.29 earlier this year to its current position under $4.00. Even at this price point, short interest is extremely high at 17.5%. As worrisome as this is, there remains less short interest in YGE than in Trina Solar (TSL) and Suntech Power Holdings (STP), at 27.8% and 17.8%.

Although many shorts in the market see YGE as a slightly stronger bet than some competitors, it remains a solid stock to go short on. The company is not free cash flow positive (and it never has been) and has over $800 million in debt. Additionally, Wall Street analysts, a typically optimistic bunch, have turned on the stock, with many, including Citi, setting price targets as low as $1 per share.To continue reading, click here


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