Why Tesla, SunEdison, Fitbit, GoPro, Weight Watchers And U.S. Steel Are Screaming 'Short Squeeze'

SunGard's Astec Analytics delivers intra-day short-selling market data to its clients. The firm's top pick from a securities lending perspective this week was Tesla Motors Inc TSLA.

Other stocks that that saw plenty of short-selling activity included the following:

• Sunedison Inc SUNE
• Weight Watchers International, Inc. WTW
• Fitbit Inc FIT
• GoPro Inc GPRO
• United States Steel Corporation X

Here's a look at Karl Loomes' list of top stocks in the Americas from a security lending perspective.

Tesla

This week's top pick in the Americas was the electric vehicles manufacturer. Loomes noted that, despite the rapidity with which Tesla became one of the best-known vehicle brands in the world, its stock performance has been "far from electric." Over the past year, the stock gained less than 7 percent.

However, the current valuation is "some way below its 12-month peak of $282 but way above its IPO (2010) to 2013 range of around $30." Over the past year, short interest has been surging with volumes up about 25 percent by December of 2015, ahead of a substantial acceleration, adding an extra 20 percent between December and January 15, 2016. "Pushing utilization over 90 percent in the past week has caused the cost to borrow to nearly double, testing the resolve of those holding on to their short positions, but hold on they are in the expectation of further falls in this prime brand."

SunEdison

"Solar energy has been a problem industry across the globe in 2015, and SUNE has been in the full glare of the issues blighting the industry," the report reflected. The stock had risen significantly over the first half of last year; notwithstanding, over the second half it managed to lose all of its gains.

Until last November, borrow volumes stood above 50 million shares, and this produced a pot of unrealized gains of $800 million. During December, borrow volumes doubled and the "additional 50 plus million shares sold short have yet to bank any significant gains and have more than missed the main solar storm."

Over the last week, however, volumes fell, "suggesting profit taking for some short sellers, but more than 77 million shares remain sold short, suggesting further clouds on this company’s horizon."

Weight Watchers International

Occupying the third spot in this list was the famed weight loss company. Last week, Weight Watchers made it to the top of the list of the biggest losers on the NYSE, as its shares lost over one third of their value.

The stock has had a volatile few months. Short interest started increasing in the first days of December, surging "in a straight line to double the volume as of last week as short sellers rode the share fall from $25 down," Loomes said. "The post-holiday boost was put down, in part at least, to a new series of adverts featuring Oprah Winfrey. The boost has been short-lived, however, and WTW will be keen to find ways it can put value on − and keep it on."

Fitbit

"The wearable technology provider was one of the IPO gems of 2015, rising some 75 percent in the first two months of trading," Astec stated. Nonetheless, in spite of some volatility, shares have been on a downtrend trend. As the wearable tech market becomes increasingly crowded, Fitbit "seems to have suffered from the fickle nature of the industry, apparently missing the mood of users with its latest offering."

Last week, the stock broke below its to close at less than $18, almost one third of their peak value. "Short interest has been on the move again in the last weeks, rising around 40 percent from a recent low point at the end of 2015, timed to very neatly capture the more than $10 fall from January 5 to date. With the shares now below their IPO price, FIT has a great deal of ground to catch up."

GoPro

Another wearable tech and hot stocks regular, GoPro made it to the list once again this week. After sluggish holiday sales and the announcement of a 7 percent reduction in its workforce, investors seem quite disappointed. "This has done little to arrest the 76 percent fall in its share price over the last 12 months, which is particularly painful given the 33 percent gain posted by August last year, when short interest had fallen to its lowest level post IPO."

By November, borrow volumes had climbed from under three million shares to over 28 million shares, as the stock fell from above $40 to under $20 -- generating an unrealized gain of almost $500 million. "Profit taking may well have been the cause of a fall in borrow volumes in December, but they are on the march again since the turn of the year as the shares fell a further $7 to under $12, indicating further trouble ahead for this young company," Loomes said.

United States Steel Corp.

"Switching from one of the newest, most advanced industries to one of the most traditional, U.S. Steel Corp is under pressure from falling demand and cheap imports," the firm said. Over the past six months, shares have tumbled 68 percent, after posting positive gains in the first half of last year.

Short interest started to increase rapidly in September, "as the rust began to show; volumes more than doubled between September and the end of the year, continuing to a more than 10-year peak last week," Loomes continued.

Over this same period, the stock lost more than $10 to trade below $7. "With no end in sight to supply and demand issues in the market, the outlook is not as shiny as it once was, and with increased short interest comes increased costs to borrow the shares as they become more scarce. Higher fees are not dissuading the short sellers, however, who remain in position possibly in expectation of further falls in U.S. Steel."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.