10 Cheap Dividend Payers With Explosive Potential

I recently ran a screen to identify high yielding, cheap stocks (under 15 p/e) with a high short ratio. The aim was to find stocks with the potential for explosive returns if a short-covering rally were to occur, so I highlighted the companies with the top 10 short ratios from the screen.The first chart below shows the result of this screen, which uncovered Rogers Communications (RCI), Guangshen Railway (GSH), Garmin Ltd (GRMN), The Washington Post Company (WPO), NewMarket Corp (NEU), Harris Corp (HRS), Pitney Bowes (PBI), AGL Resources (AGL), Lockheed Martin (LMT) and Canadian Imperial Bank of Commerce (CM).As you can see, the highest short ratios are well above the average short ratio for all stocks that met the p/e screen. What a high short ratio means is that there's a disproportionately high number of short positions on the stock relative to the outstanding share capital. While this... Read more