Squeeze Ideas: 20 Rallying Stocks Being Targeted by Short Sellers

Here we present 20 rallying stocks, currently trading above their 20-day, 50-day, and 200-day moving averages. These stocks have also seen significant increases in the number of shares shorted month-over-month.

Do you think these names deserve this recent pessimism? Or will the inevitable short-covering push these stocks even higher? Full details below.



List sorted by change in shares shorted as a percentage of share float.

1. Western Refining Inc. (WNR): Oil & Gas Refining & Marketing Industry. Market cap of $1.55B. The stock is currently 5.28% above its 20-day moving average, 12.82% above its 50-day MA, and 92.16% above its 200-day MA. Shares shorted have increased 45.87% month-over-month (from 8.48M to 12.37M). Change in shares shorted is 7.30% of a 53.32M share float. WNR has a relatively low correlation to the market (beta = 0.67), which may be appealing to risk-averse investors. The stock has gained 210.55% over the last year.

2. Glu Mobile, Inc. (GLUU): Multimedia & Graphics Software Industry. Market cap of $190.31M. The stock is currently 11.83% above its 20-day moving average, 19.22% above its 50-day MA, and 103.69% above its 200-day MA. Shares shorted have increased 341.98% month-over-month (from 696.86K to 3.08M). Change in shares shorted is 5.48% of a 43.5M share float. The stock has had a couple of great days, gaining 18.61% over the last week.

3. Whiting Petroleum Corp. (WLL): Oil & Gas Drilling & Exploration Industry. Market cap of $8.79B. The stock is currently 9.49% above its 20-day moving average, 15.22% above its 50-day MA, and 39.70% above its 200-day MA. Shares shorted have increased 89.38% month-over-month (from 2.92M to 5.53M). Change in shares shorted is 2.23% of a 117.25M share float. The stock has gained 8.57% over the last week.

4. BorgWarner Inc. (BWA): Auto Parts Industry. Market cap of $8.79B. The stock is currently 4.95% above its 20-day moving average, 7.40% above its 50-day MA, and 36.13% above its 200-day MA. Shares shorted have increased 21.26% month-over-month (from 10.82M to 13.12M). Change in shares shorted is 2.08% of a 110.45M share float. The stock is a short squeeze candidate, with a short float at 12.17% (equivalent to 6.71 days of average volume). The stock has had a couple of great days, gaining 5.64% over the last week.

5. Leap Wireless International Inc. (LEAP): Wireless Communications Industry. Market cap of $1.20B. The stock is currently 15.59% above its 20-day moving average, 15.90% above its 50-day MA, and 26.75% above its 200-day MA. Shares shorted have increased 24.77% month-over-month (from 5.33M to 6.65M). Change in shares shorted is 1.68% of a 78.41M share float. The stock has had a good month, gaining 29.64%.

6. Aaron's, Inc. (AAN): Specialty Retail Industry. Market cap of $2.02B. The stock is currently 6.51% above its 20-day moving average, 13.91% above its 50-day MA, and 37.58% above its 200-day MA. Shares shorted have increased 17.85% month-over-month (from 6.78M to 7.99M). Change in shares shorted is 1.56% of a 77.57M share float. The stock is a short squeeze candidate, with a short float at 9.28% (equivalent to 12.66 days of average volume). The stock has gained 10.93% over the last month.

7. Limelight Networks, Inc. (LLNW): Business Services Industry. Market cap of $767.65M. The stock is currently 8.89% above its 20-day moving average, 6.89% above its 50-day MA, and 25.06% above its 200-day MA. Shares shorted have increased 48.21% month-over-month (from 3.07M to 4.55M). Change in shares shorted is 1.44% of a 103.03M share float. The stock has had a couple of great days, gaining 10.27% over the last week.

8. Aircastle LTD (AYR): Rental & Leasing Services Industry. Market cap of $969.26M. The stock is currently 2.39% above its 20-day moving average, 4.80% above its 50-day MA, and 25.62% above its 200-day MA. Shares shorted have increased 60.71% month-over-month (from 1.40M to 2.25M). Change in shares shorted is 1.10% of a 77M share float. The stock has gained 33.55% over the last year.

9. Gulfport Energy Corp. (GPOR): Independent Oil & Gas Industry. Market cap of $1.58B. The stock is currently 18.17% above its 20-day moving average, 32.26% above its 50-day MA, and 94.25% above its 200-day MA. Shares shorted have increased 37.60% month-over-month (from 850.32K to 1.17M). Change in shares shorted is 0.98% of a 32.53M share float. The stock has had a couple of great days, gaining 11.18% over the last week.

10. Joy Global, Inc. (JOYG): Farm & Construction Machinery Industry. Market cap of $9.99B. The stock is currently 4.54% above its 20-day moving average, 5.35% above its 50-day MA, and 30.65% above its 200-day MA. Shares shorted have increased 27.64% month-over-month (from 3.22M to 4.11M). Change in shares shorted is 0.85% of a 104.38M share float.

11. Waddell & Reed Financial Inc. (WDR): Asset Management Industry. Market cap of $3.50B. The stock is currently 2.69% above its 20-day moving average, 4.43% above its 50-day MA, and 31.97% above its 200-day MA. Shares shorted have increased 47.73% month-over-month (from 1.32M to 1.95M). Change in shares shorted is 0.75% of a 84.35M share float. The stock has gained 5.27% over the last week.

12. Conexant Systems Inc. (CNXT): Semiconductor Industry. Market cap of $196.27M. The stock is currently 0.61% above its 20-day moving average, 3.47% above its 50-day MA, and 26.09% above its 200-day MA. Shares shorted have increased 17.74% month-over-month (from 3.27M to 3.85M). Change in shares shorted is 0.71% of a 81.14M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock has lost 29.71% over the last year.

13. LivePerson Inc. (LPSN): Business Services Industry. Market cap of $661.37M. The stock is currently 14.01% above its 20-day moving average, 16.04% above its 50-day MA, and 38.92% above its 200-day MA. Shares shorted have increased 22.73% month-over-month (from 1.32M to 1.62M). Change in shares shorted is 0.67% of a 44.46M share float. The stock has had a couple of great days, gaining 9.32% over the last week.

14. Strategic Hotels & Resorts, Inc. (BEE): REIT. Market cap of $965.69M. The stock is currently 3.82% above its 20-day moving average, 3.64% above its 50-day MA, and 28.83% above its 200-day MA. Shares shorted have increased 20.89% month-over-month (from 4.50M to 5.44M). Change in shares shorted is 0.63% of a 149.82M share float. The stock has gained 5.12% over the last week.

15. Williams Companies, Inc. (WMB): Oil & Gas Pipelines Industry. Market cap of $18.44B. The stock is currently 3.90% above its 20-day moving average, 9.11% above its 50-day MA, and 37.47% above its 200-day MA. Shares shorted have increased 33.49% month-over-month (from 10.84M to 14.47M). Change in shares shorted is 0.62% of a 583.5M share float. The stock has gained 39.28% over the last year.

16. Warren Resources Inc. (WRES): Oil & Gas Equipment & Services Industry. Market cap of $363.88M. The stock is currently 13.92% above its 20-day moving average, 3.04% above its 50-day MA, and 25.30% above its 200-day MA. Shares shorted have increased 17.71% month-over-month (from 1.92M to 2.26M). Change in shares shorted is 0.50% of a 67.49M share float. The stock has had a couple of great days, gaining 8.05% over the last week.

17. RSC Holdings, Inc. (RRR): Rental & Leasing Services Industry. Market cap of $1.49B. The stock is currently 4.45% above its 20-day moving average, 9.32% above its 50-day MA, and 55.33% above its 200-day MA. Shares shorted have increased 20.30% month-over-month (from 2.02M to 2.43M). Change in shares shorted is 0.43% of a 95.19M share float. The stock has gained 80.53% over the last year.

18. Corn Products International Inc. (CPO): Processed & Packaged Goods Industry. Market cap of $3.90B. The stock is currently 8.46% above its 20-day moving average, 8.42% above its 50-day MA, and 26.82% above its 200-day MA. Shares shorted have increased 129.91% month-over-month (from 250.24K to 575.32K). Change in shares shorted is 0.43% of a 75.61M share float. The stock has had a couple of great days, gaining 6.89% over the last week.

19. Albemarle Corp. (ALB): Synthetics Industry. Market cap of $5.44B. The stock is currently 6.56% above its 20-day moving average, 5.45% above its 50-day MA, and 20.28% above its 200-day MA. Shares shorted have increased 17.63% month-over-month (from 909.60K to 1.07M). Change in shares shorted is 0.18% of a 86.71M share float. The stock has gained 6.59% over the last week.

20. Majesco Entertainment Co. (COOL): Multimedia & Graphics Software Industry. Market cap of $128.90M. The stock is currently 29.73% above its 20-day moving average, 77.08% above its 50-day MA, and 227.72% above its 200-day MA. Shares shorted have increased 27.53% month-over-month (from 207.07K to 264.08K). Change in shares shorted is 0.17% of a 34.04M share float. The stock has had a couple of great days, gaining 37.13% over the last week.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz. (Note: current month for shares shorted is month ended Feb. 28, 2011).

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.