Cramer's List of Overly Shorted Stocks (ETH, SHLD, RATE, PNRA, more..)

September 17, 2008 1:17 PM EDT

Responding to the SEC's announcement that it will now enforce naked short selling rules, RealMoney.com's Jim Cramer just put out a list of profitable company's that he believes are "way overly shorted". Cramer notes that short covering in these names could be "brutal":

  • Chipotle (NYSE: CMG)
  • Ethan Allen (NYSE: ETH)
  • J. Crew (NYSE: JCG)
  • Martha Stewart Omnimedia (NYSE: MSO)
  • Vail Resorts (NYSE: MTN)
  • Under Armour (NYSE: UA)
  • Vulcan Materials (NYSE: VMC)
  • Columbia Sportswear (Nasdaq: COLM)
  • Garmin (Nasdaq: GRMN)
  • lululemon (Nasdaq: LULU)
  • PF Chang's (Nasdaq: PFCB)
  • Panera (Nasdaq: PNRA)
  • Bankrate (Nasdaq: RATE)
  • Sears Holdings (Nasdaq: SHLD)
Of these (that was not Cramer's full list), Cramer said his favorites are Ethan Allen, Sears, Bankrate and Panera as they are "all profitable, all either doing well or could turn, and all do well if the housing market turns."

Cramer reiterates several times that these stocks are not automatically going to move higher just because naked shorting will no longer be allowed; instead, Jim points out that these stocks are hard to borrow, meaning that anyone "short them will have a hard time finding stock."


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Stocks Mentioned

CMG 53.41

-3.85 -6.72%
Volume: 542,332
Track CMG

COLM 32.52

-1.38 -4.07%
Volume: 141,954
Track COLM

ETH 13.87

-0.77 -5.26%
Volume: 268,429
Track ETH

GRMN 20.37

-0.66 -3.14%
Volume: 982,582
Track GRMN

JCG 9.91

-0.70 -6.60%
Volume: 3,419,123
Track JCG

LULU 7.59

-0.40 -5.01%
Volume: 601,654
Track LULU

MSO 3.51

+0.08 +2.33%
Volume: 286,803
Track MSO

MTN 26.97

-1.63 -5.70%
Volume: 828,916
Track MTN

PFCB 20.25

-0.66 -3.16%
Volume: 389,928
Track PFCB

PNRA 51.31

-0.74 -1.42%
Volume: 472,128
Track PNRA

RATE 31.20

-2.80 -8.24%
Volume: 629,554
Track RATE

SHLD 46.73

-3.25 -6.50%
Volume: 3,444,122
Track SHLD

UA 24.00

-1.06 -4.23%
Volume: 381,645
Track UA

VMC 61.19

-1.81 -2.87%
Volume: 1,338,894
Track VMC


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Comments

Visa
Gary SHort on Sep 18, 2008 10:52 AM

Why is Visa going down with Financials? I thought they made money on transaction fees and the banks were the lenders?


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