Today's Eye Opener

This Tuesday Morning eye opener: 5 most shorted stocks through LocateStock.com

LCC- Airline companies are always subject to some looming disaster. Theres fuel prices rising, theres security cost increases, global credit crunch making debt more expensive and more inaccessible, further increasing costs of operation, then throw in less consumer spending, less domestic travel, and the added burden for US Airways that they will probably see a significant decrease in their Europe – US flights. The plunging Euro against the US Dollar will make the promise of going to the US and buying almost half price goods a lot less attractive. Its made a nice comeback from 2 -10 in a solid 12 month time frame. Long Term debt up 50% in 2 years, other debt labeled Short/Current Long Term Debt coupled with Liabilities of 770M up from 117M in 2007, an increase of better than 600%. IT appears they have 9.50 in cash on hand but a 10% increase to the already negative Net Tangible Assets. A number advancing into negative territory is typically not representative of positive results. Cheap Euro, Higher oil prices, could spell retracement of LCC


CWTR
Cold Water Creek, no not the ice cream company. That Coldstone Creamery, heavy exposure to retail, through their 365 retail apparel and merchandise shops and a reliance on e commerce the bears seem to think the stock has some room to the downside. The company has decreased its debt load a bit and seems to have survived the single dip.


WYNN
Up 20% in 2 weeks. Up 50% in 2 quarters, a whopping 300% meteoric rise in a single fiscal year, all thanks to decreased debt load, increased cash on hand and destinations to the East projecting golden goose like returns. A TV Commentator recently said that people sleep good at night investing in Steve WYNN. The stock looks to Macau with high hopes but more and more of any uptick from International business will be need to stave off the growing dilemma casinos are facing in a crumbling Vegas. Housings in crisis, according to Seeking Aplha Contributor Micheal T. Snyder, ( http://seekingalpha.com/author/michael-t-snyder) “Unemployment is up around 14.2%” and that’s right in the heart of town, the state rate is 13.7%. Come to think of it Nevada Munis are probably a bad bet right now, as its estimated that “the vast majority of homes in Nevada are worth less than they what they owe. Ouch. “The National average for “underwater homes” is a historical record of 24%, but dwarfed by Nevadas average of 65%. With the infrastructure decaying in Vegas and room occupancies, and layoffs at the casinos. All that glitters for WYNN may not be gold, and the stock looks like it could comfortably trade at a near term support level of 75, if 3X book holds true for WYNN. The 3X book seems to work for bigger sector mate LVS whos trading at a slight premium to cash at 6 ½ times, than WYNN who is holding at only 6 times their cash. With a 25% pop in the last month LVS could be a downside play for the short term as well.

XLF
With the financial stocks breathing a sigh of relief that they are only facing 19Billion in new taxes financial stocks rose. What?? Yep you heard it, they try to slip it by you….only 19Billion? This coupled with whole sectors vulnerability. The Stress Tests ordered on US Banks, hypothesized a 10.2% unemployment rate as a worst case scenario that could trigger a need for further recapitalization of the banks. Some shorts are playing the XLF Financial ETF as a bet against the sector rather than picking and choosing individual financial stocks.

The Sleeper
HRBN
Its been popping up lately and the stock trades thin every so often the stock has fits of volume where the shorts seem to find some depth of market. The company Harbin electric out of Harbin China sells electric motors, and micro motors, through a chain of subsidiaries. The stock seems to be approaching a near term rest level of $16. the company has exposure to the auto industry as the motors they manufacture are used in the electric powered seats in cars. Any double dip creates these type of unintended consequences.