Earning Momentum Stocks With Unbelievable Short Interest Ready To Break Out
Heavily shorted stocks in companies with sustainable with earnings momentum have produced accelerated losses for the professional shorts. Some stocks have large enough short positions that the position has become impossible to cover without a tremendous price appreciation in the security. What follows are the factors I base my short squeeze investments on.1. Shorted shares Air Max 95 Shoes for Men , institutionally held shares, and closely held shares (Form 3 and Form 4 filers), when added together, must equal over 100% of the company's outstanding shares.2. Short interest must be over 30% of the float.3. Institutional holdings must be over 40% of the outstanding shares.4. The company does not have any short term financing plans.5. There must be at least three credible Wall Streets analysts following the company.6. The company must have a history of giving guidance and a track record of meeting or exceeding the guidance.7. The company needs two years of rapid growth (20% year over year) and two years of similar growth projected8. (ZAGG)Zagg designs and manufactures accessories for the smart phone and tablet market. Zagg is the leading smartphone accessory player in the US. They sell the InvisibleShield screen protector for Apple and Android products. Zaggs holds the US patent for protecting electronics with film.
ZAGG's core product is their Invisible Shield screen protector.ZAGG owns iFrogz, a major case and accessory seller. ZAGG also sells keyboard cases for the tablet market and has partnered with Logitech (LOGI) selling cobranded iPad keyboard cases throughout the Apple Stores.Most of these products are sold through Big Box retailers like Best Buy (BBY), WalMart (WMT) and smartphone retailers such as AT (T) and through the Apple Stores (AAPL) 2013 nike shoes for men . ZAGG also holds 47% interest in HZO which is a venture capital backed company that designs a nanotechnology coating that protects devices from damage by water and moisture. That's right HZO is making it possible to waterproof your phone.What follows here are the reasons why I believe ZAGG is a great investment:1. There are 31 million Shares outstanding, of which there are, 9.4 million shares short. Institutions own 12.1 million shares, and insiders own 10.5 million shares. This adds up to 32.5 million shares, 1.5 million shares more than what is currently outstanding.2. The last three years of revenues are $38.1 million, $76.1 million and $179.1 million and projected revenue in 2012 exceeding $250 million.3. There are four analysts following the company all having buy recommendations with a consensus price per share estimate of $21.4. Analysts are projecting 2012 earnings of $0.80 versus $0.63 in 2011.5. ZAGG has met or beat the street estimate for six quarters in a row.7. ZAGG has a PEG ratio of .55.Skullcandy, Inc. (SKUL)Skullcandy is a lifestyle products company selling distinct audio branded headphones and other smart phone accessories. Skullcandy brings color, character, and performance to what has been a monochromatic space. They cobrand products with the NBA and other sporting venues. They also recently announced a line that links with runway model Kate Upton.
