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5 Stocks the Bears Got Dead Wrong

See why the shorts are walking away from these companies

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GameStop (GME)

short interest gmeStock gain in past year: 135%
Change in shares shorted: -59%
Change in shares days to cover: -35%

Beaten-down GameStop (GME) was another popular name for short sellers around a year ago, both because of its brick-and-mortar nature and because of the unsure future of physical used games in the next generation of gaming consoles.

But everything keeps coming up GameStop, sending the bears fleeing and shares soaring. The company has topped analyst earnings estimates for four straight quarters, and GME stock has soared more than 130% over the past year to reach early 2008 highs.

Short sellers have obviously been quick to take bets elsewhere. A year ago, 44.3 million shares of GME stock were sold short — more than half the float. It would have taken the bears almost three (trading) weeks to cover. Since then, the bears have given up on nearly 30 million of those shares, leaving just 18% sold short.

Volume has fallen off in the past month or so, so it still would take to nine days to cover. Nonetheless, GME is enjoying its lowest level of short interest in almost three years.

Article printed from InvestorPlace Media,

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