This month saw an exceptional rise in a new category: companies on death watch. These are stocks that now sell for less than $6 per share and have fallen by 90% or more.
Heavy new shorting means that some investors anticipate a high probability of bankruptcy.
All of these stocks carry low bankruptcy Z-Scores, which means they have a significant chance to default. These stocks include: Office Depot (ODP), OfficeMax (OMX), ArvinMeritor (ARM), Patriot Coal (PCX), and Huntington Bancshares (HBAN).
| Short Interest as % of Shares Outstanding |
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|---|---|---|
| OMX |  |
 Stock
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| ODP |  |
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| ARM |  |
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| PCX |  |
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| HBAN |  |
Sector