Investors short blue chip stocks as they look for a short queeze or fear for the companies' poor business. Aetnahealth's operations would be impacted by health care reform. Verizon Communication saw a sharply decline in its traditional business. Linear Technology's business is hurt by the impact of Japanese tsunami and nuclear disaster and the global economic slowdown. Those are just some of many reasons why investors are shorting their stocks. UBS, a premier global provider of wealth management, investment banking, asset management services has unveiled its list of shorted stocks based on highest concentration of clients. Here are seven most shorted stocks.
Due to Japanese tsumani and nuclear disaster, Linear Technology's order have been declining. The circuit maker's business is also hurt by the world's economic slowdown.
Short percent of float: 7.3%
YTD return: -4.48%
Chipotle is facing a harsh competions from big rivals. The company's stock is considered to be over-hyed.
Short percent of float: 13.1%
YTD return: +59.82%
Netflix is facing an aggressive competition from Microsoft whose plan is to offer online pay television from Comcast on the Xbox.
Short percent of float: 18.01%
Investors raised concerns about Citigroup's mortgage foreclosure practices and balance sheet.
Short percent of float: 2.2%
Aetnahealth Inc. reported its net income of 586 million in the first quarter of 2011. Although its stock rise, but it is feared that the company's business operations and financial results would be impacted by the health care reform.
Short percent of float: 0.73%
YTD return: +32.94%
Green Mountain's stock is considered to be over-valuated. The company is allegated of tricky accounting practices.
Short percent of float: 16%
YTD return: +113.94%
Verizon Communications' traditional land line phone business declined sharply. The company is facing a $2 billion fraudulent transfer lawsuit filed by FairPoint Communications.
Short percent of float: 1.7%
YTD return: +0.19%
Short sellers anticipate market sell-off better than institutional investors
Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.