Short Stocks: AIG among top bets in late June

NEW YORK, July 10 (Reuters) - Short interest on the Nasdaq
and New York Stock Exchange rose in the second half of June,
the exchanges said on Friday, suggesting a continuing increase
in bearish sentiment following a recent run-up in stocks.

The following list shows stocks that saw interest from
short sellers, who bet that a certain stock's price will fall,
and key recent news events for those stocks. The data reflect
short trades with a settlement date of June 30.

For full story click on [ID:nN10535543]. For factboxes see
[ID:nN10538683] and [ID:nN10514559]).

AMERICAN INTERNATIONAL GROUP (AIG.N)

Short interest rose 14.5 percent in the company.

The company said in late June it revised its 2008 annual
report to add a new risk factor that shows it may recognize
valuation losses on a credit default swap portfolio held by its
troubled financial products unit. [ID:nN29406743]

About 262 million of the company's shares were held short,
just below 10 percent of its shares outstanding in June 30, the
day the company approved a 1-for-20 reverse split that was
effective July 1.

CHIMERA INVESTMENT CORP (CIM.N)

Short interest rose almost 300 percent in the real estate
investment trust.

About 27.6 million of the company's shares were held short,
or 4.3 percent of its total shares outstanding.

VALE (VALE.N)

Short interest in ADRs of the Brazilian miner decreased
more than 18 percent.

In late June, the world's largest producer of iron ore
signed a preliminary accord with state-run oil giant Petrobras
to buy a 25 percent stake in exploration rights for oil and gas
blocks off Brazil's coast. The company has expanded its energy
operations in order to provide for its own consumption needs.

FREDDIE MAC (FRE.N)

Short interest in the company's shares increased more than
20 percent.

The second-largest U.S. home funding company said in June
its mortgage investment portfolio shrank by an annualized 9.9
percent rate in May, while delinquencies on loans it guarantees
accelerated.

About 80 million of its shares were held short.

FORD MOTOR CO (F.N)

Short interest in shares of the U.S. automaker fell 11
percent to about 121 million shares.

The company forecast increased U.S. market share and said
its sales would hold up much better than the rest of the
industry. It also increased production. [ID:nN29399395]

(Editing by Richard Chang)