Short stocks: Bets build against E*Trade, NutriSystem

NEW YORK, Oct 24 (Reuters) - Short interest on the Nasdaq
fell 2.3 percent in mid-October, the exchange said on
Wednesday, suggesting a decrease in bearish sentiment in the
stock market.

The following stocks saw increased interest from short
sellers, who bet that a stock is overvalued and that its price
will fall. The data reflect short trades with a settlement
date of Oct. 15.

For full story please see [ID:nN24192206]. For factbox
please see [ID:nN24285858].

E*TRADE FINANCIAL CORP (ETFC.O)

Short interest increased more than 16 percent from late
September to mid- October in shares of the online brokerage.

The company posted a third quarter loss this week and
lowered its full-year forecast for the fourth time this year.

About 25.3 million of the company's shares were held short,
or close to 6 percent of the company's shares outstanding.

NUTRISYSTEM INC (NTRI.O)

Short interest increased more than 24 percent in shares of
the company, according to the exchange. NutriSystem provides
weight management products and services.

The company, on Wednesday posted lower third-quarter
earnings and lowered its 2007 revenue outlook, saying it
expects a 20 percent drop in new customers. Several investors
have sued the company this month, claiming the company had not
properly disclosed problems acquiring new customers.

About 16.6 million of the company's shares were held short,
or almost 50 percent of its shares outstanding.

NPS PHARMACEUTICALS INC (NPSP.O)

Short interest in shares of the drug company nearly tripled
from late September to mid-October.

The company said this month that a higher dose of its
experimental drug, Gattex, to treat short bowel syndrome,
missed its goal in a late stage study.

About 3.8 million of the company's shares are held short,
or about 8 percent of its shares outstanding.

MARVELL TECHNOLOGY GROUP LTD (MRVL.O)

Short interest in shares of the maker of microchips
increased almost 15 percent from late September to
mid-October.

The company posted a quarterly net loss in August, and this
month received a "Wells Notice" from regulators at the U.S.
Securities and Exchange Commission advising it that it planned
to seek penalties against the company and one of its employees
relating to its past option-granting practices.

About 18.9 million shares of the company were held short,
or about 32 percent of its shares outstanding.

NOVELLUS SYSTEMS INC (NVLS.O)

Short interest in shares of the supplier of equipment for
making microchips rose almost 27 percent.

The company on Tuesday posted a drop in quarterly profit
citing a "slowdown" as "the industry is in a state of flux."
The company had forecast in August that its quarterly orders
could fall more than previously expected.

About 8.8 million of the company's shares were held short,
or about 7 percent of its shares outstanding.

DOLLAR TREE STORES INC (DLTR.O)

Short interest increased more than 25 percent in shares of
the discount retailer from late September to mid-October.

The company's chief financial officer resigned this month,
and JP Morgan recently lowered its investment rating on its
shares, saying the company's stock price looked overvalued.
Investors also have been worried that the company's consumers
would spend less during this upcoming holiday season as they
struggle with high gas prices and higher mortgage payments.

About 5.1 million of the company's shares were held short,
or about 5.3 percent of its shares outstanding.
(Reporting by Emily Chasan)