Should the Market Rally, play High Short Interest Stocks (UA, NFLX, URBN)

A quick Bull rally could happen next week, what's one way of playing it to benefit the most?  High short interest stocks that are profitable companies and are credible businesses.  We're not talking about Crocs Inc (CROX), rather the few companies that will return to greatness and may get caught in a short squeeze.

In finance, a short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock.

Short squeezes result when short sellers cover their positions on a stock. This can occur if the price has risen to a point where these people simply decide to cut their losses and get out. (This may happen in an automated manner if the short sellers had previously placed stop-loss orders with their brokers to prepare for this eventuality.) Since covering their positions involves buying shares, the short squeeze causes an ever further rise in the stock's price, which in turn may trigger additional covering.

Short squeezes are more likely to occur in stocks with small market capitalization and small floats. 

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This list is highly speculative and the Masters are not recommending our readers to go out and buy everything on the list, but do add them to a watch list.  Here's a lineup of potential short squeeze candidates that the Masters have their eye on, all of these guys have a short interest greater than 30% of the float.  Some are better than others, but the point of this exercise is targeting the short interest stocks that may jump on a moments notice.

Here are the tickers so you can cut/paste them into a portfolio:

UA  MWA  NTRI  BIDZ  NFLX  URBN  VPRT  WBMD

	Name	Symbol	Last price	Change	Mkt cap	Volume	Open	High	Low
	Under Armour, Inc.	UA	32.83	+0.22 (0.68%)	1.62B	214,168.00	33.74	33.8	32.61
	Mueller Water Products, Inc.	MWA	11.21	+0.19 (1.72%)	1.29B	94,662.00	11.11	11.326	11.02
	NutriSystem Inc.	NTRI	18.78	-0.61 (-3.15%)	556.64M	244,948.00	19.6	19.86	18.806
	BIDZ.com, Inc.	BIDZ	8.95	-0.04 (-0.44%)	211.51M	89,651.00	9.06	9.26	8.95
	Netflix, Inc.	NFLX	30.26	+0.26 (0.87%)	1.84B	268,595.00	30.1	30.78	30
	Urban Outfitters, Inc.	URBN	34.97	+0.54 (1.57%)	5.84B	965,519.00	34.76	35.6	34.62
	VistaPrint Limited	VPRT	31.26	-0.65 (-2.04%)	1.38B	288,144.00	31.41	31.91	30.75
	WebMD Health Corp.	WBMD	31.01	-0.45 (-1.43%)	1.78B	57,042.00	31.46	31.78	30.74

Name	Symbol	Last price	Mkt cap	Avg vol	52wk high	52wk low	EPS	P/E	Fw P/E	Beta
	Under Armour, Inc.	UA	33.00	1.62B	1.18M	69.91	23.5	0.82	40.14	35.47
	Mueller Water Products, Inc.	MWA	11.18	1.29B	588,000.00	14.18	6.64	0.34	33.16		1.00
	NutriSystem Inc.	NTRI	18.84	557.21M	935,000.00	58.48	12.55	2.05	9.21		2.76
	BIDZ.com, Inc.	BIDZ	8.90	211.27M	284,000.00	22.5	7.09	0.74	12.06
	Netflix, Inc.	NFLX	30.20	1.84B	1.64M	40.9	16.92	1.09	27.75		2.62
	Urban Outfitters, Inc.	URBN	34.94	5.84B	4.05M	37.09	20.75	1.02	34.26		1.34
	VistaPrint Limited	VPRT	31.22	1.38B	957,000.00	48.6	24.46	0.87	36.09
	WebMD Health Corp.	WBMD	31.07	1.80B	263,000.00	63.49	21.86	0.70	44.49

According to Finviz.com, the short interest in these stocks is the following:

UA

MWA

NTRI 

BIDZ 

NFLX 

URBN 

VPRT 

WBMD

At some point the best players on this list will comeback, such as Under Armour, Inc. , Netflix, Inc. and Urban Outfitters, Inc.

Let's review some recent articles that are relevant to our short interest stocks:

Don't forget Microsoft's XBOX 360 is teaming up with Netflix:

"Netflix and Xbox 360 are a perfect combination, joining forces to create an all-in-one entertainment experience."
— Reed Hastings, Netflix

4-Star Stocks Poised to Pop: Under Armour
Motley Fool - Aug 19, 2008
Under Armour rules! Although not as well advertised at the Olympics as I would have thought, they are burrowing into the American landscape. ...UA