However, since the stock has already shed more than two-thirds of its value over the past year, the shorts feel as if the easy money on the downside has already been made. Despite a lack of profitability, MAKO’s still growing its revenue at a healthy pace, so it’s not going away.
Lennar Corporation (NYSE:LEN)’s sporting its lowest short interest since May of last year.
Homebuilders have been rocking lately. Home prices keep inching higher, and that’s huge for residential developers that have to deal with component costs (unlike the market for existing homes, which has more pricing flexibility). Mortgage prices are also still near historic lows, giving home buyers more bang for their bucks.
Finally, we have SodaStream. Save for a dip to 7.4 million shares sold short at the end of last year, this is as low as the short interest has gotten for the company behind the popular home-based maker of carbonated beverages.
Fears that SodaStream’s platform is a fad have been debunked. Not only is SodaStream’s popularity on the rise, but its growth rate is actually accelerating. SodaStream recently posted a 55% surge in revenue in the holiday quarter, highlighted by a record 1.1 million starter kits sold. This naturally bodes well for the future.
The stock’s attractive valuation — SodaStream’s fetching just 15 times next year’s earnings, though its growing a lot faster than that — is giving bears fewer reasons to keep comparing SodaStream to pet rocks and Furby dolls.
The article 5 Stocks That Bears Are Avoiding originally appeared on Fool.com and is written by Rick Aristotle Munarriz.
Longtime Fool contributor Rick Aristotle Munarriz owns shares of Netflix and SodaStream. The Motley Fool recommends Facebook, MAKO Surgical , Netflix, and SodaStream. The Motley Fool owns shares of Facebook, Netflix, and SodaStream.
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