NASDAQ Shorts

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The Nasdaq’s (NASDAQ:NDAQ) most shorted stocks are taking a beating. Here’s the news encouraging short sellers.

Sirius XM Radio Inc. (NASDAQ:SIRI): Investors are expressing skepticism that the company can compete against simpler entertainment options such as Pandora (NYSE:P) and Spotify.

Sirius XM Radio had 299,035,691 shares sold short as of Dec 15th, as compared to 294,696,977 on Nov 30th, which represents a change of 4,338,714 shares, or 1.5%. Days to cover for this company is 7. The company went public in 1994, and since then, its stock has dropped 61% as growth and earnings have failed to impress.

Intel Corporation (NASDAQ:INTC): Intel Corporation is facing increased skepticism about its ability to grow in light of the widespread adoption of tablets and other mobile computing devices, in which its chips have a limited presence.

Intel had 120,548,516 shares sold short as of Dec 15th, as compared to 119,714,369 on Nov 30th, which represents a change of 834,147 shares, or 0.7%. Days to cover for this company is 2.

Express Scripts (NASDAQ:ESRX): Express Scripts has been in a months-long dispute with drugstore chain Walgreen (NYSE:WAG).  Both Walgreen and Express Scripts are looking to generate business through other channels as their spat shows no signs of ending.

Express Scripts had 79,237,428 shares sold short as of Dec 15th, as compared to 77,962,654 on Nov 30th, which represents a change of 1,274,774 shares, or 1.6%. Days to cover for this company is 13.

Dell Inc. (NASDAQ:DELL): As with Intel Corporation (see above), Dell is facing pressure because many view its best days as behind it.  The move to tablet computers and other mobile computing devices has largely eclipsed the company.

Dell had 68,378,211 shares sold short as of Dec 15th, as compared to 67,977,411 on Nov 30th, which represents a change of 400,800 shares, or 0.6%. Days to cover for this company is 4. The shares have declined 46% over the past decade, though they are still up more than 14,000% from its IPO in 1988.

Cisco Systems, Inc. (NASDAQ:CSCO): Cisco, like Intel Corp. and Dell, Inc., is facing mounting pressure from investors to figure out how to compete in the new world of cloud-based, mobile computing.

Cisco Systems had 67,364,986 shares sold short as of Dec 15th, as compared to 72,651,554 on Nov 30th, which represents a change of -5,286,568 shares, or -7.3%. Days to cover for this company is 1. The shares are down almost 2% over the past decade and 33% over the past 5 years.

Micron Technology, Inc. (NASDAQ:MU): Micron Technology is another chip manufacturing company that, like Intel Corporation, has had trouble proving to investors that it can compete in a world dominated by tablets and other mobile computing devices.

Micron Technology had 67,127,184 shares sold short as of Dec 15th, as compared to 64,575,139 on Nov 30th, which represents a change of 2,552,045 shares, or 4.0%. Days to cover for this company is 3.

Microsoft Corporation (NASDAQ:MSFT): Microsoft’s stock has been flat over the past decade, as persistent concerns that the company has become too large and unfocused dog it.  Concern has also mounted that the company has become an also-ran in operating systems, with the rise of Apple‘s (NASDAQ:AAPL) OS X and Google‘s (NASDAQ:GOOG) Android operating system.

Microsoft Corporation had 55,791,002 shares sold short as of Dec 15th, as compared to 67,124,075 on Nov 30th, which represents a change of -11,333,073 shares, or -16.9%. Days to cover for this company is 1. The shares have declined by 23% over the past decade, though they remain 25,000% above their IPO price in 1986.

Research In Motion Limited (NASDAQ:RIMM): Research in Motion has been eclipsed by both Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) and their flagship product, the Blackberry smartphone, has gone from must-have tech object to tech pariah in a little under a year.  While the company’s management has dithered, the stock has declined.

Research In Motion Limited had 42,495,693 shares sold short as of Dec 15th, as compared to 37,875,375 on Nov 30th, which represents a change of 4,620,318 shares, or 12.2%. Days to cover for this company is 2. The shares have increased by 230% over the past decade and 680% from its IPO in 1999.

Capstone Turbine Corporation (NASDAQ:CPST): These shares are being sold short on simple fundamentals.  A cursory review of the company’s cash flow statement shows that the company is increasingly relying on funding by issuing securities, not from cash generated by its operations.  Cash flow from operations for the six months ending 9/30/11 was -19.79 million and its net change in cash over the same period was -13.12 million.

Capstone Turbine Corporation had 39,892,639 shares sold short as of Dec 15th, as compared to 40,717,329 on Nov 30th, which represents a change of -824,690 shares, or -2.0%. Days to cover for this company is 16. The shares have declined by 76% over the past decade and by 97% since its IPO in 2000.

To contact the reporter on this story: Dave Friedman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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