Competition in the Railroads industry is starting to heat up, and a few stocks, like Burlington Northern Santa Fe Corp. (BNI), are falling behind. Here's something to watch. Burlington Northern Santa Fe Corp., Union Pacific Corp. (UNP) and Canadian National Railway Company (CNI) are each affected by the same general fundamental forces that affect all of the companies in the Railroads industry. However, if you dig down into the short interest for each stock and calculate their short-interest ratios, you will see that stock traders have less confidence in Burlington Northern Santa Fe Corp. than they do in the other two. Short-interest ratios tell you how long---on average---it will take short traders to cover their short positions on a particular stock. Take these three stocks for instance. {loadposition link_newslink1} | {loadposition livevideopromo} | | | | | | | | | {loadposition contentad} | | | | | Burlington Northern Santa Fe Corp. has a current short ratio of 1.97. That means it would take approximately 1.97 days for traders to cover their short positions. Union Pacific Corp. has a current short ratio of 1.42. That means it would take approximately 1.42 days for traders to cover their short positions. Canadian National Railway Company has a current short ratio of 1.28. That means it would take approximately 1.28 days for traders to cover their short positions. Typically, the higher the short ratio, the more bearish traders are on a stock. So out of these three stocks in the Railroads industry, Canadian National Railway Company seems to be in the best shape in the minds of traders and Burlington Northern Santa Fe Corp. is in the worst shape. Of course, stocks with too much short interest are always in danger of becoming the target of a short squeeze so make sure to watch for those stocks with high levels of short interest to suddenly take off on any signs of good fundamental or economic news. {loadposition link_nowtime} {loadposition followus} |