GoPro, Kodak Capture Short Sellers' Attention

FIS Astec Analytics released its latest weekly list of the most popular stocks among short sellers. This week’s list is topped by two companies attempting to make major business transitions to turn around their struggling businesses.

Here’s a rundown of this week’s hottest stocks among short sellers.

Top Pick: GoPro

Short sellers clearly see GoPro Inc GPRO’s disappointing guidance, layoffs and plans to transition away from the drone business as a bad sign for the stock. GoPro shares tumbled 17 percent in the past week to new 52-week lows, but 84 percent of available shares remain utilized by short sellers.

1. Eastman Kodak

Short sellers aren’t buying the story that a new cryptocurrency can save Eastman Kodak Company Common New KODK. Not surprisingly, Kodak made its debut on the top shorts list the week after announcing the creation of KodakCoin, and short interest volume jumped from below 30 percent of available supply to above 98 percent.

2. AMC Entertainment

Short volume in AMC Entertainment Holdings Inc AMC increased 5 percent last week ahead of the company’s upcoming fourth-quarter earnings report. Despite a rising supply of available shares, utilization remains at an elevated 80 percent.

3. Roku

Roku Inc ROKU was one of the hottest IPOs of 2017, but short sellers remain skeptical. Net short positions increased by 5 percent last week, maxing out utilization at 100 percent of available supply.

4. Overstock.com

Short sellers are using Overstock.com Inc OSTK as an instrument to make bearish bets on bitcoin and the blockchain frenzy. Even with available supply on the rise, the utilization rate remains at 81 percent.

5. Applied Optoelectronics

Applied Optoelectronics Inc AAOI has been a regular on the top shorts list for months. FIS Astec reports short sellers closed out about 6 percent of their positions in the past week, but utilization increased by 1 percent to 84 percent, suggesting a contraction in available supply.

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