The Top Five Short Interest Leaders (CMC, FSYS, IRIDQ, MCOMQ, GAP)

If the market breaks out of its most recent range, shorts are likely to get squeezed. While it remains to be seen whether today’s strong, broad-based rally will hold into next week (after options expiration week, which favors a rising/supported market), if it does stocks with high short interest are likely to outperform. Here are the top-five short interest leaders… 1. Iridium World Communications LTD IRIDQ, 73.28% short interest 2. Metricom Inc. MCOMQ, 57.34% short interest 3. Commercial Metals Co. CMC, 55.45% short interest 4. Fuel Systems Solutions Inc. FSYS, 54.63% short interest 5. The Great Atlantic & Pacific Tea Company GAP, 50.19% short interest Note: Metricom and Iridium are currently in bankruptcy and are trading for pennies, which do not make them the best plays for short interest reversion. CMC, GAP, and FSYS, purchased as a basket, will provide an interesting play on an overall breakout. Traders should remember to place tight stops on these stocks as a hedge to the market breaking down.