6 Stocks Under $3 With Significant Short Covering

6 Stocks Under $3 With Significant Short Covering

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Do you like stocks trading at low share prices? Although these stocks can be suffering from bad recent performance (value traps), they can also just be small-cap companies with low share prices.

Finding quality stocks in a low-price range can be difficult, so we started with a universe of names with market caps above $300 million and trading between $1 and $3. Markets trading at these values tend to be less observed than their higher-priced peers, and less scouted by penny stock investors. We feel stocks in this range offer an opportunity to explore a relatively unobserved universe of stocks. High market caps suggest greater stability.

We ran a screen on these stocks for those with bullish sentiment from short-sellers, with significant decreases in shares shorted month-over-month.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will outperform, or could they be value traps? Use this list as a starting point for your own analysis.

 

1. Cell Therapeutics, Inc. (CTIC, Earnings, Analysts, Financials): Engages in the development, acquisition, and commercialization of drugs for the treatment of cancer. Market cap at $1.02B, most recent closing price at $1.25. Shares shorted have decreased from 6.41M to 2.39M over the last month, a decrease which represents about 8.62% of the company’s float of 46.62M shares. Days to cover ratio at 0.91 days.

 

2. Lexicon Pharmaceuticals, Inc. (LXRX, Earnings, Analysts, Financials): Focuses on the discovery and development of drug candidates for the treatment of various human diseases. Market cap at $881.28M, most recent closing price at $1.72. Shares shorted have decreased from 12.93M to 9.87M over the last month, a decrease which represents about 1.35% of the company’s float of 226.99M shares. Days to cover ratio at 8 days.

 

3. MannKind Corp. (MNKD, Earnings, Analysts, Financials): Focuses on the discovery, development, and commercialization of therapeutic products for diabetes and cancer. Market cap at $476.81M, most recent closing price at $1.94. Shares shorted have decreased from 30.47M to 27.11M over the last month, a decrease which represents about 2.66% of the company’s float of 126.38M shares. Days to cover ratio at 10.48 days.

 

4. Clearwire Corporation (CLWR, Earnings, Analysts, Financials): Provides wireless broadband services. Market cap at $3.19B, most recent closing price at $2.18. Shares shorted have decreased from 65.07M to 50.87M over the last month, a decrease which represents about 2.89% of the company’s float of 490.71M shares. Days to cover ratio at 2.59 days.

 

5. Knight Capital Group, Inc. (KCG, Earnings, Analysts, Financials): Provides access to the capital markets across multiple asset classes to buy-and sell-side firms, and corporations, as well as offers capital markets services to corporate issuers and private companies primarily in the United States. Market cap at $460.18M, most recent closing price at $2.53. Shares shorted have decreased from 12.49M to 10.28M over the last month, a decrease which represents about 1.23% of the company’s float of 179.59M shares. Days to cover ratio at 3.91 days.

 

6. SUPERVALU Inc. (SVU, Earnings, Analysts, Financials): Operates retail food stores in the United States. Market cap at $570.07M, most recent closing price at $2.67. Shares shorted have decreased from 88.59M to 84.71M over the last month, a decrease which represents about 1.83% of the company’s float of 212.07M shares. Days to cover ratio at 15.53 days.

 

 

Short data sourced from Yahoo Finance; all other data sourced from Finviz.

 

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