7 Highly Shorted Stocks Set for a Big Move

The bears are circling these stocks, but some could escape

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7 Highly Shorted Stocks Set for a Big Move

Cliffs Natural Resources

cliffs 7 Highly Shorted Stocks Set for a Big MoveShort Interest: 40.3%
2013 Return: -46.7%

As with U.S. Steel, Cliffs Natural Resources (CLF) has been demolished in 2013 thanks to a slowdown in China gutting commodity demand — in this case, for coal as an energy source.

But bigger-picture, there are serious concerns about coal as an energy source. China has struggled mightily to control its pollution and carbon emissions that have ramped up as a result of rapid industrialization, and coal is hardly one of the favorite energy sources in the West as developed nations move away from this fossil fuel.

It’s a tough outlook for Cliffs, then, both in the short-term and the longer-term. And with natural gas still relatively cheap and abundant but cleaner-burning, it seems unlikely for the coal outlook (or the trajectory of CLF) to change.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter at @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/7-highly-shorted-stocks-set-for-a-big-move/.

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