Short Stocks: Bets build against banks, transports

NEW YORK, July 10 (Reuters) - Short interest on the New
York Stock Exchange rose 2.7 percent in late June, hitting a
fresh record high, while short interest held steady on Nasdaq.

The following stocks saw increased interest from short
sellers, who bet that a certain stock's price will fall. The
data reflect short trades with a settlement date of June 30.

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WACHOVIA CORP WB.N

Short interest climbed almost 33 percent in shares of the
No. 4 U.S. bank.

The bank has warned it might lose as much as $2.8 billion
in the second quarter.

About 235 million of the company's shares were held short,
or close to 11 percent of its total shares outstanding.

GENERAL MOTORS CORP (GM.N)

Short interest was up more than 27 percent in shares of the
top U.S. automaker.

Analysts have said GM needs to raise between $10 billion
and $15 billion to shore up its liquidity because of the
continued slump in U.S. sales, particularly for bigger trucks
and SUVs.

About 153 million of the company's shares were held short,
or around 27 percent of its total shares outstanding.

BANK OF AMERICA CORP (BAC.N)

Short interest rose almost 23 percent in shares of the U.S.
bank.

Analysts have been worried that the company's planned
acquisition of mortgage lender Countrywide Financial will
increase losses for the bank. A Morgan Stanley analyst cut its
rating on the bank on Thursday, saying it may have to raise $12
billion in capital and cut its dividend by 20 percent in order
to meet credit loss.

About 101.5 million of the company's shares were held
short, or about 2 percent of its total shares outstanding.

KEYCORP (KEY.N)

Short interest was up more than 81 percent in shares of the
large U.S. Midwest regional bank.

Last month the company raised $1.65 billion of capital and
halved its dividend after losing a federal tax case over
leases.

About 23.7 million of the company's shares were held short,
or about 5 percent of its total shares outstanding.

US AIRWAYS GROUP (LCC.N)

Short interest climbed more than 47 percent in shares of
the airline.

Airlines have been under pressure from rising fuel prices,
and UBS analysts suggested last month that the company may have
the highest liquidity risk in the industry.

About 30.7 million of the company's shares were held short,
or more than 33 percent of its total shares outstanding.

POPULAR INC (BPOP.O)

Short interest was up almost 26 percent in shares of the
parent of Puerto Rican bank Banco Popular.

Shares of the company are down more than 50 percent since
May. An analyst at Kaufman Bros. Equity Research downgraded her
investment rating on the company to "hold" last month, citing
worries that the economy of Puerto Rico is weakening further.

About 52 million of the company's shares, or around 18
percent of its total shares outstanding, were held short.

ANADIGICS INC (ANAD.O)

Short interest rose almost 46 percent in shares of the
mobile phone chip maker.

Analysts have been concerned about rising costs and falling
demand in the rapidly growing, but fiercely competitive
cell-phone market. An analyst Oppenheimer cut an investment
rating on the stock to "perform" from "outperform" in May.

About 14.7 million of the company's shares, or around 23
percent of its total shares outstanding, were held short.

(Reporting by Emily Chasan, editing by Richard Chang)