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: Stillwater Mining Co (SWC), YRC Worldwide Inc (YRCW), Delta Petroleum (DPTR), McMoRan Exploration (MMR), Cousins Properties Incorporated (CUZ), South Financial Group (TSFG), Omrix Biopharmaceuticals, Inc. (OMRI), Palm Inc (PALM), Temple-Inland (TIN), Thomas Properties Group, Inc. (TPGI), Frontier Financial (FTBK), RPC (RES), Solarfun Power Holdings Co., Ltd. (SOLF), Alon USA Energy, Inc. (ALJ), Isle of Capris Casinos (ISLE), Cascade Bancorp (CACB), Steak n Shake (SNS), Ariba Inc (ARBA), Post Properties (PPS), Zumiez Inc. (ZUMZ), Children's Place Retail Stores (PLCE), James River Coal Co (JRCC), iRobot Corporation (IRBT), Century Aluminum (CENX), JA Solar Holdings Co., Ltd. (JASO).

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.