Short interest high in biotech/pharma sector
Short interest in Myriad Genetics, Inc. (NASDAQ:MYGN) is still riding high as an unprecedented number, 55%, of outstanding shares are held in short bets. Negative interest in the biotech and pharmaceutical companies is clearly visible in the list, EXACT Sciences Corporation (NASDAQ:EXAS), Questcor Pharmaceuticals Inc (NASDAQ:QCOR), Horizon Pharma Inc (NASDAQ:HZNP) and Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) all have high short interest.
The metals and mining sector has attracted several shorts, Cliffs Natural Resources Inc (NYSE:CLF) has a short interest of 34%, Molycorp Inc (NYSE:MCP) 27% and United States Steel Corporation (NYSE:X) has 25% of outstanding shares out on loan.
Outerwall and Equinix, famous longs are also popular shorts
Barry Rosenstein’s famous long holding Outerwall Inc (NASDAQ:OUTR) is the second most shorted stock with a short interest of 40%, up from 31% at the end of 2013.
Equinix Inc (NASDAQ:EQIX), one of hedge fund’ favorite long holding, is also one with high short interest. 21% of EQIX’s outstanding shares are held in short bets. Elliott Associates, Jana Partners, Lone Pine Capital and Paulson & Co. are among the long holders of Equinix.
Plug Power and 3D Systems are now highly shorted
New entries in the most shorted list of stocks include Plug Power Inc (NASDAQ:PLUG), a company that makes electrical equipment using alternative energy. ValueWalk recently posted Anthony Bozza’s short thesis on Plug Power, which talked about Plug Power’s outlandish trading volumes and magical 45-fold increase in stock price over the course of a year. Kerrisdale Capital has also initiated a short in the stock. According to GS, short interest in Plug Power amounts to 21% of outstanding shares.
3D Systems Corporation (NYSE:DDD), another publicly touted short, also showed up the list of shorted stocks. Bearish bets in the company now amount to 26% of outstanding shares. Whitney Tilson has repeatedly talked about his views on 3D Systems and has expressed extreme skepticism about the company’s business model. Citron Research’s Andrew Left also said at one point that 3D systems is flawed beyond measure.