>>>One stock the shorts are glomming onto is Maytag (MYG: Research, Estimates). Shares of the home-appliance company have surged nearly 50 percent since the beginning of the year, and short interest has more than tripled in the past few months. As of April 15, 4.6 million of the company's 54 million available shares, were being held short, compared to short interest of just 1.5 million shares in mid-December.
To be sure, Maytag's fundamentals seem strong, and the company recently raised earnings guidance for 2002. But David MacGregor, an analyst with Midwest Research, says he thinks more short sellers are questioning the rise in Maytag's stock due to concerns about the company's balance sheet.
Maytag is loaded down with debt. As of March 31, Maytag had about $1.2 billion in current liabilities (including accounts payable and short-term debt) as well as $774 million in long-term debt, but only $91.4 million in shareholder's equity. In the first quarter, Maytag had $17.4 million in interest expense related to its debt, up 14 percent from the same period a year ago. MacGregor has a "neutral" rating on Maytag and says it is "ripe for profit taking." <<<
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