20 Underperforming Stocks Targeted By Short Sellers

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10. Cable One, Inc. (NYSE:CABO)

Short interest: 16.28%

6 months’ performance: -21.62%

Cable One, Inc. engages in the provision of voice, video, and data services inside the United States. It offers the Sparklight TV service, a cloud-based digital voice recording service, and also helps boost wifi signals at home through its residential data services.

The reason shorts are attracted to a company like Cable One is because of the current industry trends. Wireless voice services are way more in demand now than residential video services. This shifting trend is quite visible in the company’s revenues, with residential video services down from 41% of total revenue 10 years ago to only 14% now.

This leaves the company to compete in the data services industry, which is a highly competitive niche. Its capital-intensive business was looking quite attractive till 2022, when neither revenues nor cash flows were going strong. However, a consistent decline in revenues and stabilizing cash flows point to an unattractive future. The share price has already dropped from $2100 to $174 in three and a half years and continues to go down with each passing quarter.

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