Go short or go home

Top 6 ½ Most Shorted Stocks

June 2 by Stevan

Maybe it just doesn’t look very sexy anymore and has become the stock equivalent of a frumpy housewife. Or perhaps its growth has been grinding to a near-halt and people aren’t quite convinced it’s able to innovate. It could be that its CEO, rebranding or new product line sucks. Whatever the reason, investors love short-selling these stocks. So without further ado, here are the most shorted stocks traded on BUX:

1. BlackBerry
The BlackBerry is to smartphones what Kodak is to photos. Sure, it might have started out as the pioneer but it failed to keep up with the times. Before long, it was eating the dust of Apple, Samsung and a host of other brands. While the BB with its characteristic keyboard was once owned by every self-respecting businessman, who the heck has one today? Which is why BlackBerry has dropped the clunky hardware – instead, it now licenses its brand to handset manufacturers. While there are glimmers of hope in its transition to a software company, investors aren’t totally convinced about its post-handset future.

 Well, at least this little guy likes Blackberry…

2. Monster
Just like the extreme sports the energy drink maker sponsors, its volatile shares have also sent people on an adrenaline rush. While Monster enjoyed huge growth in the last few years, it’s also struggling with increased competition, especially from arch-rival Red Bull. Also, energy beverages have been getting a bad rep lately because they either contain a lot of sugar or caffeine. Though Monster has been introducing new kinds of drinks, investors seem to think people will continue reaching for healthier alternatives like kombucha after their crossfit class…

 After one too many cans of Monster…

3. Deutsche Bank
As Europe’s second biggest trainwreck bank, Deutsche Bank is always in the spotlight. For all the wrong reasons though. Fines, lawsuits and misconduct are just another day in the life of the troubled German lender. While it has sworn to improve controls and prevent similar cases from happening in the future, the market seems to treat it like the boy who cried wolf. Now, it’s up to Deutsche Bank to prove that this ship is turning around, and not sinking.

 When Deutsche Bank tries to soothe investors

4. Yahoo!
Once upon a time, it was the Internet stock to own. And the rest, as they say, is history. Yahoo’s shares have been on the up again since Verizon bought its Internet business over. After the sale is done, the new leftover company will be renamed Altaba. The bulk of its value will be in its $47 billion stake in Chinese ecommerce giant Alibaba, as well as its holdings in Yahoo Japan. Which is an exciting prospect to some, while others are already fatigued by this long, drawn-out Yahoo saga…

 Back in the day when even Han Solo endorsed Yahoo

5. Chevron
Yeah, the oil industry has been in a slump. But what makes this energy giant one of the most shorted stocks? Say, compared to its peers like Shell or BP. Well, while other oil majors also produce a lot of natural gas – Chevron is mostly about the liquids, as a classic oil producer. That makes it much more vulnerable to changing oil prices than many of its competitors. The only question is, are there better times ahead for Chevron soon?

6. TripAdvisor
You don’t find a lot of tech stocks on a list like this but TripAdvisor is an exception. Even as it’s proudly proclaiming itself to be the largest travel site on earth, it’s still not cashing in on its popularity. It’s been trying to go from travel reviews to travel bookings, but its efforts have been in vain. Its stumbles have made many investors question the company’s future. Will it forever be a place you visit just to leave or read reviews about bedbug-infested hotels?!

“Well, this definitely wasn’t in the TripAdvisor reviews.”

6½. Volkswagen
This stock sees a lot of action but to be fair, only one third of all trades are speculating on a drop in price. While it may not be one of the most shorted stocks on BUX, it shows investors are pretty divided on its prospects. And the maker of the Beetle only has itself to blame. Thanks to emissions scandals after which VW was hit with expensive recalls and billion-dollar fines, many traders went short.

 When das auto sucks

Written by

Stevan

'The Ted Langenbach of the markets'.

Disclaimer: All views, opinions or analysis expressed in articles are that of the author and do not represent the views of BUX. Neither BUX nor the author provide financial advice and these articles should not be construed as such.

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