I track stocks with the highest short interest because the list often times presents good candidates for contrarian type investments ideas given the potential for significant mispricing situations. One example would be a stock with a large short interest going into an earnings release that could be the subject of a major short squeeze should the results come out better than expected, forcing the shorts to cover. Also, a stock that has declined significantly over some time frame while the data shows short interest falling, could indicate a near-term bottom as bears pare back speculative