5 Heavily Shorted Stocks Reporting In The Next Two Weeks

Tickers in this article: DQ DRI FINL FRAN JOSB

Looking to trade on earnings season? We compiled a list of stocks reporting over the next two weeks that have seen an increase in skepticism from short sellers (a group of investors that benefit when share price falls). [More Lists:  8 Stocks With Buy Ratings from Deutsche Bank and UBS ]

- Market cap above $300 million

- Increase in shares shorted month-over-month

- Reporting earnings in the second half of March. 

5 Stocks made our list. Do you think the shorts are calling it right?

1. Daqo New Energy Corp. ( DQ): Together with its subsidiaries, manufactures and sells polysilicon in China. Market cap at $319.04M.

- Earnings date: 03/18/13.  
Shares shorted have increased from 112.62K to 138.13K over the last month, an increase which represents about 2.56% of the company's float of 995.84K shares. Days to cover ratio at 3.01 days.
- The g ood news is that  hedge funds are optimistic:  Net institutional purchases in the current quarter at 55.2K shares, which represents about 5.54% of the company's float of 995.84K shares. 


2. Francesca's Holdings Corporation ( FRAN): Operates a chain of retail boutiques in the United States.  Market cap at $1.17B.

- Earnings date: 03/19/13.  
- Shares shorted have increased from 15.23M to 16.00M over the last month, an increase which represents about 2.21% of the company's float of 34.79M shares. Days to cover ratio at 16.73 days. FRAN was recently one of the most active stocks traded, and jumped in share price. Shorts were eager to see shares drop after the rally but so far remain disappointed. 
- The good news is that hedge funds are optimistic: Net institutional purchases in the current quarter at 7.4M shares, which represents about 21.27% of the company's float of 34.79M shares. 

 

3. Darden Restaurants, Inc. ( DRI): Operates full service restaurant in the United States and Canada.  Market cap at $6.12B.

- Earnings date: 03/22/13.  
- Shares shorted have increased from 5.82M to 9.17M over the last month, an increase which represents about 2.61% of the company's float of 128.28M shares. Days to cover ratio at 4.51 days. 
- On Monday UBS AG downgraded shares of Darden Restaurants from a buy rating to a neutral rating.

 

4. Jos. A Bank Clothiers Inc. ( JOSB): Design, retails, and direct-markets men's tailored and casual clothing and accessories.  Market cap at $1.19B.
- Earnings date: 03/25/13.  
- Shares shorted have increased from 5.26M to 6.58M over the last month, an increase which represents about 4.79% of the company's float of 27.58M shares. Days to cover ratio at 14.7 days.

 

5. Finish Line Inc. ( FINL): Operates as a mall-based specialty retailer in the United States. Market cap at $915.16M.