Intrepid Potash, Inc. (IPI), Cantel Medical Corp. (CMN), Citigroup Inc. (C): Shorts Are Piling Into These Stocks. Should You Be Worried?

The big question mark regarding Citigroup Inc. (NYSE:C) is whether or not its success in overseas markets can continue. Over the past couple of years, overseas investing has been a risky business, with Europe instituting regionwide austerity measures and China’s growth engine slowing down. However, Citi’s overseas investments saved it from the incredulous views that investors gave conservative banking giant Wells Fargo & Co (NYSE:WFC) which sticks to the basics of banking – loan and deposit growth – within the U.S. The roughly 100 basis point spike higher in interest rates really put a damper on Wells Fargo’s mortgage investment outlook going forward and constrained its move higher as compared to Citi’s.

At 84% of book value, Citi is no longer the screaming value it once was, but it could still have some room to run higher. If it can yet again halve its bad assets over the coming two to four quarters, I feel shareholders could see a dividend hike and Citi may make a run at a multiyear high.

Foolish roundup
This week’s theme is all about balance. Citigroup Inc. (NYSE:C), with its overseas presence, and SQM with its nutrient and chemical diversity, have the financial capability to respond to changing economic environments. Cantel Medical Corp. (NYSE:CMN) also has an interesting control pipeline, but it may not have the ability to grow that product pipeline fast enough to justify its rapidly rising valuation.

The article Shorts Are Piling Into These Stocks. Should You Be Worried? originally appeared on Fool.com.

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 recommends Sociedad Quimica (NYSE:SQM) y Minera and Wells Fargo. The Motley Fool owns shares of Citigroup and Wells Fargo.

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