Investors don't have to disclose their short positions on stocks. So while a review of SEC filings can give you an idea of what investors like, it's hard to tell what they hate.
SunGard, one of the largest financial technology companies in the world has a product called Astec Analytics, which tracks securities lending data — a proxy for short selling.
They shared their data with us, breaking down the most shorted stocks of 2012 down sector by sector. The stocks are ranked by the total amount borrowing fees collected. SunGard then picked the most interesting stocks from the top end of the list of stocks shorted by volume.
There aren't too many shockers in the top spots — Research In Motion and Facebook both get nods — but the runners up may catch you by surprise.
Some of them are extremely expensive to borrow (as you know short sellers borrow stocks, they don't purchase them until the end of the trade) — SunGard included the cost to borrow these stocks over a year ("annualized borrowing cost") to give you sense of how big a bet investors were willing to make on these companies.
Automobiles & Components
Tesla Motors (TSLA) – 30 million shares borrowed, 48% annualized borrowing cost:
Mitt Romney called it a “loser” in the Presidential debates while expiring ‘green’ subsidies in the US bring uncertainty surrounding the electric vehicle maker’s future.
Runners Up:
General Motors (GM) – 58 million shares borrowed, 2% annualized borrowing cost
Ford Motors (F) – 233 million shares borrowed, 1% annualized borrowing cost
Consumer Staples, Food & Tobacco
Green Mountain Coffee Roasters Inc. (GMCR) - 42 million shares borrowed, 14% annualized borrowing cost
The expiry of the patents on its successful k-cup instant coffee pod in September have been keeping pressure on GMCR ever since, despite decent earnings results.
Runners Up:
Star Scientific Inc. (STSI) - 33 million shares borrowed, 88% annualized borrowing cost
Supervalu Inc. (SVU) - 106 million shares borrowed, 77% annualized borrowing cost
Energy
Sandridge Energy (SD) - 78 million shares borrowed, 62% annualized borrowing cost
Lawsuits against members of the board, a lack of confidence and a number of analyst downgrades saw short interest rocket in the last months of 2012.
Runners Up:
First Solar Inc. (FSLR) - 28 million shares borrowed, 21% annualized borrowing cost
Kinder Morgan Energy (KMP) - 4 million shares borrowed, 3% annualized borrowing cost
See the rest of the story at Business Insider
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