Selling a stock short means selling a stock that the seller doesn’t own. During this process of a short sale, the broker lends a number of shares to a seller from the broker’s inventory. The buyer buys the shares, with the proceeds being credited to the seller’s account. The seller must close the short position by buying back those shares and returning them to the original broker.
Here are some of the best stocks to short in 2019.
Top Stocks To Short In 2019
Snap is an American technology and camera company. In 2018, it added 0.8% in short interest in September, bringing the total amount of shorted shares to 141.88 million. Converted into company’s float, it’s approximately 25%. At the end of 2018, the company’s all-time low was $5.77 and at the beginning of the same year, it was $21.22. This downward stream makes this stock great for short sale.
Rite Aid (RAD)
Rite Aid is a company that manages dozens of retail drug stores. At the beginning of 2019, the company had around 162.25 million shorted shares, which is only a slight increase of 2% from the number in September 2018. In 2019, the company has around 15.4% shorted shares of the stock’s public float.
Ford Motor Company (F)
We all know Ford Motor Company. This company manufactures and sells cars across the globe, and not only in the USA. However, their short interest came in a total of 130.63 million. It’s still an increase of 10.8% since September 2018. Their shares, however, were sold at the modest price. It’s anywhere between $8.17 and $13.48.
General Electric (GE)
Similarly to Snap and Rite Aid, General Electric comes with a total of 124.16 million shorted shares. But, it’s only a fraction of the company’s float. To be precise, 1.4%. Their average volume is 131.17 million and as predicted, it would take only one day to cover all of the short positions.