From an investment perspective, there is really nothing better than a stock you can buy, make money off of your entire life and leave to your children, knowing they’ll be able to do the same. That’s the wise way to invest. But it isn’t particularly exciting. While we are investors first, we also know few things are as thrilling as a quick trade that lets you get in and get out fast. If you find yourself feeling the same way, you may wish to try a trade on one of the following stocks. These are companies for which things are somewhat in flux, but which we believe will soon break in one direction or the other. So while these trades may or may not make you a pile of money, they will almost certainly cause your heart to beat a bit faster.
First, a quick word on short selling to explain why a large short interest is desirable for a bullish short term investor. Short sellers (through the magic of the market) sell shares of a company that they do not own, in the hopes that the stock will fall and they can buy back the shares, pocketing the difference. Of course, if shares rise, short sellers are on the hook for a potentially unlimited loss, and as they have borrowed the stock, they are paying interest. For this reason, if there is good news, (or upward pressure on a stock for any other reason) they must rush to get out of their short positions, causing a wave of buying that naturally pushes the price of the stock even higher than it would ordinarily have gone on good news. A short position can, but does not always, limit the speed at which a stock can fall on bad news, as short sellers rushing in to take profits can stop the fall of a stock long enough to let speculators get out with limited losses. Without further ado, our current five favorite short-term plays.