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

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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