The Morning Eye Opener

In an effort to continue with the expansion of The Daily Short Report, we’ll be changing the way in which we deliver you all the information TDSR has to offer. To start, the Morning Eye Opener will give a look at the hot shorts being requested through the LocateStock platform before the market opens, to offer our dedicated followers the opportunity to get in on their short positions at the market open. Following this, JT’s market commentary, which has become the staple of this blog, will be released. Finally, an analysis of the Hottest Short will be presented, for those looking for technical data/research on one of the securities we had listed pre-market. We would love to hear what you, our dedicated readers, think about this new method of information delivery; we hope it will make The Daily Short Report more useful to those who value its information and insight.

The Morning Eye Opener

BIDU - Baidu Corp has enjoyed the benefits of no competition in the China Search space for a bit now and the stock has performed unbelievably. But with a 15% spike in the last 2 weeks, the shorts seem to think that the Bids may be disappearing quick for BIDU and the stock could see a retracement in the near term. The downside stop outs are $67, and with any macro pressure $63 could be a resting place.

FSLR - First Solar has been the bell weather of the Solar stocks, as the run in the sun seems to conincide with Oil prices, as the costs of Crude jumps so does the sentiment that alternative energy sources will be in demand. Thus the Solars seem to be moving in tight correlation with Crude prices. The trade oil up solars up seems to be a continuing theme. The shorts have been able to isolate a trade in FSLR where each time the stock has a 20% move to the upside on news or forward looking statements the shorts enter and play the stock to the 102-105 range. Right now at $120 and change, the sunny days seem to be over for the solar bulls.

DO - Diamond Offshore is caught up in the BP mess. Even though they aren’t the provider of the Deepwater horizon rig, the Obama-torium on deep water drilling means the global supply of deepwater rigs is up and demand in the gulf is Zero. So high supply, no demand means revenues effected. This means the Rig operators need to either move the rigs elsewhere, (which will be costly) or let them sit dormant and hope the moratorium is lifted. Neither option means higher profits. Stock could break under $55 and free fall a bit from there.

IFLG - InfoLogix Small cap stocks with big news tend to have substantial jumps. When theres a significant jump in one of these little guys the after effect is usually a return to the lower prices shortly after the news. The old axiom exists here, buy the rumor---sell the news. IFLG’s recently announced deal to provide voice enabled mobile solutions to SAP customers sounds great and it’s a big deal for IFLG long term, but the
Stock has doubled in under a month and that usually is fertile ground to find downside profits.

BANR - Banner Bank Holdings The regional banks continue to be under pressure. Banner just announced an offering to raise cash to meet reserve requirements and this dilution could push the stock even lower, before turning back up and feeling the benefits of the raise.