Short Stocks: Bets build against Circuit City, Pier 1

NEW YORK, Oct 4 (Reuters) - Short interest on the New York
Stock Exchange resumed its rise at the end of September,
increasing by 0.3 percent, the exchange said on Thursday.

The following stocks saw increased interest from short
sellers, who bet that a stock is overvalued and that its price
will fall.

The latest data is as of Sept. 28, compared to
mid-September data as of Sept. 14.

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see [ID:nN04440482].

CIRCUIT CITY STORES INC (CC.N: Quote, Profile, Research, Stock Buzz)

Short interest jumped more than 55 percent in shares of the
retailer from mid- to late September.

The company reported a wider-than-expected quarterly loss
last month and its shares hit a fresh four-year low this week.

About 32.44 million shares were held short in late
September, or more than 19 percent of its shares outstanding.

PIER 1 IMPORTS INC (PIR.N: Quote, Profile, Research, Stock Buzz)

Short interest increased by more than 28 percent in shares
of the home decor retailer.

The company posted a narrower second-quarter loss last
month, but its results missed analyst expectations. Pier 1
shares hit their lowest level in more than a decade last
month.

About 15.4 million shares were held short in late
September, or more than 17 percent of its shares outstanding.

TENET HEALTHCARE CORP (THC.N: Quote, Profile, Research, Stock Buzz)

Short interest rose about 7 percent in the hospital chain,
according to the exchange data.

In August, a Credit Suisse analyst said Tenet may need to
file for Chapter 11 bankruptcy in three years, in the absence
of an industry recovery in volume or patient insurance. Last
month, a large shareholder, Hotchkis and Wiley Capital
Management LLC, reported it had liquidated its 12.9 percent
stake in the company.

About 57.39 million of the company's shares are held short,
a figure equal to about 12 percent of its shares outstanding.

FURNITURE BRANDS INTERNATIONAL INC (FBN.N: Quote, Profile, Research, Stock Buzz)

Short interest increased by nearly 30 percent in shares of
the furniture maker.

The company lowered its third-quarter outlook last month,
citing continued softening of its business and weakening order
flow.

About 13.15 million of the company's shares were held short
in late September, or about 27 percent of its shares
outstanding.

DILLARD'S INC (DDS.N: Quote, Profile, Research, Stock Buzz)

Short interest in shares of the department store chain rose
more than 40 percent, according to exchange data.

The company said last month that August sales at stores
open at least a year fell a greater-than-expected 5 percent.

About 10.73 million of the company's shares were held short
in late September, equal to about 13 percent of the company's
shares outstanding.

HOVNANIAN ENTERPRISES INC (HOV.N: Quote, Profile, Research, Stock Buzz)

LENNAR CORP (LEN.N: Quote, Profile, Research, Stock Buzz)

KB HOME (KBH.N: Quote, Profile, Research, Stock Buzz)

The trio of home builders all saw double-digit short
interest increases, indicating bearish sentiment has persisted
in the sector despite rallies in the stocks after the Federal
Reserve's September rate cuts.

Short interest rose by 13.2 percent in Hovnanian to 26.12
million shares, or about 42 percent of its shares outstanding.
Short interest jumped by 12.9 percent in Lennar to 20.71
million shares, or about 13 percent of its shares outstanding.
Short interest rose by 10.1 percent in KB Home to 23.09 million
shares, or about 26 percent of its shares outstanding.

(Reporting by Emily Chasan)