7 biotechs short sellers no longer love

Companies are unhappy when bears pile into their stock, but there's good news for these ones.

By MoneyShow.com Dec 13, 2012 10:05AM

Getty ImagesBy the staff at Kapitall.com

 

When considering stocks, it's always helpful to gauge what the rest of the market thinks. One source for that is the number of shares shorted. Companies seeing significant increases in shares shorted are being viewed more negatively, and vice-versa (read more at MoneyShow.com).

 

We ran a screen on the biotech sector for stocks with the most significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were before (read more at MoneyShow.com).

 

Will these stocks outperform? We think so, but use this list only a starting point for your own analysis.

 

The list sorted by decrease in shares shorted as a percent of share float.

 

1. Affymax (AFFY) engages in the development of drugs for the treatment of serious and life-threatening conditions. Its market cap is $851.1 million, as of the most recent closing price at $22.90. Shares shorted have decreased from 4.22 million to 3.51 million over the last month, a decrease that represents about 2.22% of the company's float of 31.97 million shares. Days to cover ratio at 4.19 days.

 

2. Cell Therapeutics (CTIC) engages in the development, acquisition, and commercialization of drugs for the treatment of cancer. Its market cap is $130.94 million, as of the most recent closing price at $1.35. Shares shorted have decreased from 2.39 million to 1.91 million over the last month, a decrease that represents about 1.37% of the company's float of 35.16 million shares. Days to cover ratio at 0.67 days.

 

3. Dendreon (DNDN) engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. Its market cap is $790.10 million, as of the most recent closing price at $5.12. Shares shorted have decreased from 47.16 million to 45.68 million over the last month, a decrease that represents about 1.01% of the company's float of 146.27 million shares. Days to cover ratio at 10.99 days.

 

4. MannKind (MNKD) focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Its market cap is $535.79 million, as of the most recent closing price at $2.18. Shares shorted have decreased from 27.11 million to 25.51 million over the last month, a decrease which represents about 1.27% of the company's float of 126.38 million shares. Days to cover ratio at 9.73 days.

 

5. Momenta Pharmaceuticals (MNTA) is a biotechnology company that specializes in the in the characterization and process engineering of complex molecules. Market cap at $576.91 million, most recent closing price at $11.16. Shares shorted have decreased from 4.44 million to 3.01 million over the last month, a decrease which represents about 3.84% of the company's float of 37.24 million shares. Days to cover ratio at 8.33 days.

 

6. Obagi Medical Products (OMPI) develops and markets topical aesthetic and therapeutic prescription skin care systems. Market cap at $236.47 million, most recent closing price at $13.58. Shares shorted have decreased from 1.23 million to 1.01 million over the last month, a decrease which represents about 1.27% of the company's float of 17.29 million shares. Days to cover ratio at 5.01 days.

 

7. Threshold Pharmaceuticals (THLD) engages in the discovery and development of drugs targeting the microenvironment of solid tumors for patients living with cancer. Market cap at $244.13 million, most recent closing price at $4.34. Shares shorted have decreased from 7.87 million to 7.18 million over the last month, a decrease which represents about 1.53% of the company's float of 45.18 million shares. Days to cover ratio at 4.83 days.

 

Find more stock analysis and screens at Kapitall.com.

 

More from MoneyShow.com

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
279
279 rated 2
471
471 rated 3
714
714 rated 4
642
642 rated 5
604
604 rated 6
614
614 rated 7
450
450 rated 8
303
303 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
ARCPAMERICAN REALTY CAPITAL PROPERTIES Inc10
BIDUBAIDU Inc10
CITCIT GROUP Inc NEW10
HPQHEWLETT PACKARD CO10
ITUBITAU UNIBANCO BANCO MULTIPLO S.A.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.