GT Advanced Technologies Inc (NASDAQ:GTAT)
Why are investors shorting GT Advanced Technologies Inc (NASDAQ:GTAT)?
- GT Advanced Technologies Inc (NASDAQ:GTAT), a provider of solar-panel equipment to help increase efficiency, had quite the month — as did many solar manufacturers. The thesis behind the big move in May is that costs are now low enough to encourage businesses and governments to spend on solar upgrades. GT Advanced Technologies Inc (NASDAQ:GTAT) will especially benefit from the sale of Chinese solar panels, because, as my Foolish colleague Travis Hoium has pointed out, Chinese companies are spending very little on research and development at the moment.
Is this short interest deserved?
- In spite of the high short interest on GT Advanced Technologies Inc (NASDAQ:GTAT), this isn’t a company I’m very concerned about. Though it could see a slowdown in orders if a big Chinese solar panel producer folds under a mountain of debt, there are more than enough solar makers in China to step up and fill the supply void. GT Advanced Technologies Inc (NASDAQ:GTAT) has a good shot at succeeding in many emerging markets and is a company I’d actually suggest digging a bit deeper into.
Why are investors shorting Bio-Reference Laboratories Inc (NASDAQ:BRLI)?
- Finally, diagnostic lab services company Bio-Reference Laboratories Inc (NASDAQ:BRLI) saw its short interest rise by less than 1% from last month despite the fact that its share price soared 21% during May. At the heart of its problems is a lawsuit from a former employee who alleges improper billing practices. In addition to this gray cloud there are ongoing billing concerns for the company’s molecular diagnostic services, which aren’t always reimbursed by insurance companies.
Is this short interest deserved?
- Like last month, it’s tough to tell where Bio-Reference Laboratories Inc (NASDAQ:BRLI) may head next. The need for molecular diagnostics and personalized medicine is certainly there and is being reflected in the steady double-digit sales growth rates. However, the questions surrounding Bio-Reference Laboratories Inc (NASDAQ:BRLI)’s billing practices and whether or not insurance companies will continue to reimburse the company’s services cast enough doubt to keep me firmly planted on the sidelines.
Do you feel the NASDAQ Composite (INDEXNASDAQ:.IXIC)’s five most hated companies have been given a bad rap? Share your thoughts in the comments section below.
The article The Nasdaq’s 5 Most Hated Stocks originally appeared on Fool.com is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Bio-Reference Laboratories.
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