As discussed here, I have resurrected a scan that focuses on companies that are heavily shorted. The purpose is to find stocks that could be in the midst of a potential short covering rally. More details about the methodology are listed below and more information on short interest is here.

Companies included in today's scan are: Pilgrim's Pride (PPC), YRC Worldwide Inc (YRCW), Thornburg Mortgage (TMA), Lee Enterprises (LEE), General Growth Properties (GGP), CBL & Associates Properties (CBL), Hecla Mining (HL), Titanium Metals Corp (TIE), Nautilus Group (NLS), Aventine Renewable Energy Holdings, Inc. (AVR), LandAmerica Financial Group (LFG), FirstFed Financial (FED), FormFactor (FORM), Limelight Networks, Inc. (LLNW), CB Richard Ellis Group Inc (CBG), LDK Solar Co., Ltd. (LDK), Media General (MEG), Priceline.com Inc (PCLN), Freeport-McMoRan Copper & Gold (FCX), Synaptics Incorporated (SYNA), NxStage Medical, Inc. (NXTM), Quicksilver Resources (KWK), Ariba Inc (ARBA), MercadoLibre Inc (MELI), Furniture Brands International (FBN).

Methodology - the query scans my database of companies which has some basic filters to eliminate penny stocks and those that don't trade frequently. The table above lists stocks that have at least 10 percent of their float sold short and then shows the top gainers from the previous trading day. This can be a useful tool for finding situations where stocks with heavy short interest have begun to move.