Short Seller Chanos Eyes Medical Sector

On CNBC this morning, famed short seller Jim Chanos revealed that he is looking for shorts in the medical sector because he thinks President-elect Barack Obama, working with a hefty majority in the Congress, will make significant changes resulting in reduced margins. Chanos said, this time around, Obama will have the backing of corporate-America, which are reeling from higher and higher medical costs.

Chanos would not mention specifics on which stocks he is short in the sector, saying he is continuing to due his homework. He said there will be many opportunities on the short side.

Chanos hinted that medical devices companies could be the hardest hit. Some medical devices companies that could be on Chanos' hit list include: Stryker Corp. (NYSE: SYK), Medtronic, Inc. (NYSE: MDT), St Jude Medical (NYSE: STJ), Zimmer (NYSE: ZMH), Abbott Labs (NYSE: ABT), Covidien, Ltd. (NYSE: COV).

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