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: Century Aluminum (CENX), Eagle Bulk Shipping Inc. (EGLE), Continental Resources, Inc. (CLR), AnnTaylor Stores (ANN), Duke Realty (DRE), Focus Media Holding Limited (FMCN), Liz Claiborne (LIZ), Freeport-McMoRan Copper & Gold Inc (FCX), Apartment Investment and Mgmt. (AIV), Hecla Mining (HL), CBL & Associates Properties (CBL), Temple-Inland (TIN), DryShips Inc. (DRYS), Delta Petroleum (DPTR), Kimco Realty (KIM), NetSuite Inc. (N), W&T Offshore, Inc. (WTI), FairPoint Communications, Inc. (FRP), McMoRan Exploration (MMR), Regency Centers (REG), AMB Property (AMB), Advanced Medical Optics (EYE), Chipotle Mexican Grill Inc (CMG), Federal Realty Investment Trust (FRT), Orient-Express Hotels (OEH).

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.