In what equities popularity pageant would Myer win first prize, Metcash be the runner-up, followed by a list of finalists that include Fortescue, Flight Centre, Dick Smith, JB Hi-Fi and Orica? It would be one sponsored by short sellers.
It is the list that perversely identifies the stocks which are the most heavily backed to fall in the future.
Up until Thursday, mining services company Bradken ticked all the boxes of a classic candidate for short sellers.
Its revenue has been under pressure, its balance sheet requires fortification, and it's a victim of the commodities cycle.
But when it confirmed Thursday's speculation that private equity had an offer for the company (albeit one that is conditional and has been rebuffed by the board) the short sellers got caught in what is known as a short squeeze.
Short sellers – the best known participants being hedge funds – make their money taking a bet that stocks will go down. They typically borrow shares in a stock, sell them on the market, buy back in when the price is lower then return the stock to the original lender and make money on the trade.
At least that is the theory. In the case of Bradken, the shorts (that accounted for a bit more than 3 per cent of the shares), got it wrong.
Many needed to buy back stock at higher prices and in the rush to do so sent Bradken's share price soaring even higher.
Short sellers are some of the most active portfolio traders in the market – thus their outperformance, or, underperformance, is exaggerated.
While Bradken fitted the mould it came with risks. Over the past three months there have been a couple of private equity funds sniffing around the stock. The shorts were clearly punting on the fact the vultures had disappeared.
Primary Health Care was another of the market's most shorted stocks at the end of March. The squeeze came when a news snippet a few days ago suggested it could be the subject of takeover.
However, Primary Health Care was more of a fleeting short – one whose share price had risen a little higher than it should based on fundamentals.
But as for the list outlined at the start, they sit under the banner of longer term shorts. Running down the long list of those stocks with a fairly high proportion of shorts on their share register, the majority have common issues.
There is a major cluster of stocks that are engaged in producing mineral commodities – particularly iron ore, and a fair smattering of oil and gas stocks.
The most heavily shorted of these this week was Fortescue with 12.1 per cent of its stock in the hands of shorts, Atlas Iron with 10 per cent, and Mount Gibson with 7.73 per cent. With the iron ore price continuing to fall there is little reason to get out of that trade.
Aligned with this there are the mining services companies whose fortunes rise and fall with the clients they service.
Among these are Ausdrill, Orica and Mineral Resources.
Other than resources stocks, the other industry dominating the list is retail – headed by Melbourne's grand dame of department stores, Myer. Almost one-fifth of its shares are in the hands of investors betting it will go lower still.
The head of one of the biggest funds in the market (they prefer not to be named) told me candidates for shorts on the Australian market fall into two categories. The companies that are hit by the fall in commodities prices and those that are structurally challenged by the digital revolution.
He includes the retailers, and traditional media operators, in this group which is headed by Myer but also including Metcash (17 per cent shorted) JB Hi-Fi, Dick Smith, Woolworths, Super Retail, Kathmandu and the Reject Shop.
Retailers are also under pressure from sluggish consumer confidence and the general slowdown in economic growth.
Even after taking this into account there are plenty that fit the bill but are not being targeted.
Those with balance sheet issues that may need to raise funds are a better bet, as are those with a flawed business model.
Myer takes the number one place because the market believes its earnings are under threat, it will embark on a costly transformation, and its balance sheet is pressured.
Woolworths has not been a traditional member of shorts club but its recently announced investment into resetting its prices has led to concern about earnings growth in the current year and longer term margins.
The jackpot for shorts is picking companies that are ultimately unsustainable – and this explains why some of the smaller higher cost iron ore players are targets.
The highest profile member of the club has to be Fortescue given its recent failure to refinance its large debt load. Its largest shareholder, Andrew Forrest, has previously waded into the market to pick up stock and neutralise short sellers.
