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: Trina Solar Limited (TSL), Hecla Mining (HL), JA Solar Holdings Co., Ltd. (JASO), RPC (RES), Forest Oil (FST), Tesoro Petroleum (TSO), Build-A-Bear Workshop, Inc. (BBW), AeroVironment, Inc. (AVAV), Lindsay Manufacturing Co. (LNN), Ceradyne (CRDN), Metabolix, Inc. (MBLX), W&T Offshore, Inc. (WTI), Suntech Power Holdings Co., Ltd. (STP), Continental Resources, Inc. (CLR), Bunge Limited (BG), Delta Petroleum (DPTR), CIT Group Inc (CIT), Cooper Companies (COO), Sohu.com Inc (SOHU), Overseas Shipholding Group (OSG), First Tennessee National (FHN), Reinsurance Group of America (RGA), Almost Family, Inc (AFAM), Carbo Ceramics (CRR), Freeport-McMoRan Copper & Gold Inc (FCX).

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.