Traders Are Short These Precious Metals Stocks Now

With all the talk going on about silver’s (NYSE:SLV) decline, and gold’s inexorable rise (NYSE:GLD), it is worth taking a look at stocks tied to other precious metals.  Specifically, it’s worth taking a look at those stocks which have a large amount sold short.  Speculators in stocks can sometimes profit from short squeezes.  Short squeezes happen when the price of a stock rises and the people who have established a short position in the stock have to suddenly buy back the stock that they borrowed to effect the short position, thus driving the price higher still.  These plays are divorced from any fundamentals underlying the stock.

Following is a list of these stocks:

  1. Uranium Energy Corp. (AMEX:UEC):  Its short interest is 12.7% of its total shares outstanding.  About the company:  Uranium Energy Corporation explores for and develops uranium resources in the southwestern United States.
  2. Jaguar Mining (NYSE:JAG): Its short interest is 11.9% of its total shares outstanding.  About the company:  Jaguar Mining, Inc. acquires, explores, develops, and operates gold mineral properties in Brazil.  The Company owns operations in the state of Minas Gerais, Brazil.
  3. Seabridge Gold, Inc. (AMEX:SA): Its short interest is 9.8% of total shares outstanding.  About the company:  Seabridge Gold, Inc., acquires gold project in North America.  The Company expands and verified these resources, moves them to reserves to determine their economic value, and either sell to or forms joint ventures with larger companies for mine construction and production.
  4. Hecia Mining Company (NYSE:HL): Its short interest is 8.6% of its total shares outstanding.  About the company:  Hecia Mining Company explores, develops, and mines precious metals, gold and silver.  The Company has operations in the United States and Mexico.
  5. Stillwater Mining Company (NYSE:SWC): Its short interest is 8% of total shares outstanding.  About the company:  Stillwater Mining Company explores for, develops, extracts, processes, and refines platinum, palladium, and associated metals from the J-M Reef located in Stillwater and the East Boulder Mine near McLeod, Montana.  The Company also recycles automotive catalytic converters in its processing facility in Columbus, Montana.
  6. Coeur d’Alene Mines Corporation (NYSE:CDE): Its short interest is 7.4% of its total shares outstanding.  About the company:  Coeur d’Alene Mines Corporation, through its subsidiaries, explores, develops, operates and/or owns silver and gold mining properties and companies.  The Company’s properties are located primarily in the United States, Australia, and South America.
  7. Uranium Resources, Inc. (NASDAQ:URRE): Its short interest is 7.1% of its total shares outstanding.  About the company:  Uranium Resources, Inc. acquires, explores, develops, and mines uranium properties using the in situ leach mining process.  The Company sells uranium to electric utilities under long-term contracts.
  8. U.S. Gold Corporation (NYSE:UXG): Its short interest is 6.7% of its total shares outstanding.  About the company: U.S. Gold Corporation explores for, develops, produces, and sells gold.  The Company operates primarily in Nevada.
  9. General Moly, Inc. (AMEX:GMO): Its short interest is 5.8% of its total shares outstanding.  About the company:  General Moly, Inc. develops, explores, and mines molybdenum minerals in the United States.
  10. Tanzanian Royalty Exploration Corp. (AMEX:TRE): Its short interest is 5.7% of its total shares outstanding.  About the company:  Tanzanian Royalty Exploration Corporation acquires, explores, and develops mineral properties.  The Company explores for gold.

Another great read: Gold & Silver Premium Vastly Outperforms with 86.5% Return in 2010>>