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One of the screens I run from time to time in my search for ideas is what I call the good vs. evil screen. I simply look for stocks with high short interest ratios that are also seeing insider buying. The short sellers have a reason to think the stock is due for a fall. The insiders just as clearly have reason to think the company is worth more than the current stock quote.

Somebody's going to be right and somebody's going to be wrong. Therefore, there is money to be made from the situation. Sometimes the shorts are right in the short run and the insiders prove to be right in the long run. Either way, there is still going to be a point where the shorts have to cover and create buying pressure in the shares....579 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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