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Stocks the Top Investors Are Betting Against

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It takes a lot of guts to short a stock. By hoping the share price will decline, your best-case scenario is that the company goes bankrupt -- a 100% gain. On the other hand, if the stock miraculously rebounds, your potential losses are infinite. Put simply, if you're going to make a short call, you'd better be sure you're right.

Using Motley Fool CAPS, the Fool's 115,000-plus-member investing community, we can see which stocks are receiving the greatest percentage change in "underperform" calls that CAPS All-Star players have made each week. The All-Stars aren't necessarily putting real money behind their shorts, but they do put their CAPS score and their reputations on the line by making such bold calls. A sudden increase in bearish interest from top-rated investors could signal that the stock's one to avoid, or at least deserves further research.

Here are five stocks being bombarded by "underperform" ratings from CAPS All-Stars over the past month:

Company

Sector

Change in All-Star Bears From 8/18 to 9/15

CAPS Rating
(Out of 5)

CAPS Research

General Electric (NYSE: GE  )

Conglomerates

35%

****

GE

Dell (Nasdaq: DELL  )

Technology

33%

**

DELL

FirstFed Financial (NYSE: FED  )

Financials

32%

*

FED

Cisco (Nasdaq: CSCO  )

Technology

29%

****

CSCO

EMCORE (Nasdaq: EMKR  )

Technology

27%

**

EMKR

Come and join us on CAPS to learn more about these and countless other interesting stock ideas. Sign up for free.

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Dell is a Motley Fool Inside Value recommendation. Try any of our Foolish newsletter services free for 30 days.

Todd Wenning drives on a parkway and parks on the street. He owns no shares of any company mentioned. The Fool's disclosure policy protects bulls and bears alike.


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Related Tickers

3/3/2009 4:01 PM
FED $0.11 Down +0.00 +0.00%
FirstFed Financial… CAPS Rating: *
GE $18.94 Down -0.13 -0.68%
General Electric C… CAPS Rating: ****
EMKR $1.26 Down -0.06 -4.55%
EMCORE Corp CAPS Rating: *
CSCO $20.07 Up +0.04 +0.20%
Cisco Systems, Inc… CAPS Rating: ****
DELL $18.04 Up +0.06 +0.33%
Dell CAPS Rating: **

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