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: DryShips Inc. (DRYS), Developers Diversified Realty (DDR), James River Coal Co (JRCC), Global Industries (GLBL), Universal Display Corp (PANL), Lindsay Manufacturing Co. (LNN), GSI Commerce (GSIC), Gaylord Entertainment (GET), Sunstone Hotel Investors, Inc. (SHO), Ford Motor Co (F), CBL & Associates Properties (CBL), ATP Oil & Gas Corp (ATPG), Sonic Automotive (SAH), Itron Inc (ITRI), RSC Holdings Inc. (RRR), General Motors Corp (GM), Genco Shipping & Trading Limited (GNK), Central European Media Enterprises. (CETV), GLIMCHER REALTY TRUST (GRT), Kenneth Cole Productions (KCP), Smithfield Foods (SFD), Maguire Properties Inc (MPG), Century Aluminum Co (CENX), Freeport-McMoRan Copper & Gold Inc (FCX), Brookfield Homes Corp (BHS).

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.