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Subject:  How to find stocks targeted for short sales? Date:  5/8/2008  9:32 AM
Author:  joshnix2 Number:  13 of 81

Hey fools,

I have been value investing ad buying small CAPS since about September last year and finally I am seeing some gains. Anyways, I am interested after reading the article today about CNBC's Million Dollar portfolio. This is what intrigued me to post here:

"Look for shorts. Stocks with a large chunk of their shares shorted are great candidates for quick upward moves, especially when combined with the potential for a good earnings announcement. When there's a significant portion of the stock shorted and the stock starts to move up, the shorts start to cover and send the stock even higher."

How do you find information about short shares and what else do you look at in order to determine that there will be long term gains? Obviously free cash flow is something I look for and a good quick ratio. But what else? I am more interested now in doing my homework on stocks than ever.

Thanks in advance
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