Short sellers don't often circle major energy companies, but Kinder Morgan (KMI) isn't your typical energy stock.
Shares of the oil-and-gas pipeline operator exploded this week after the announcement of a $71 billion plan to consolidate its empire in an effort to reduce its taxes.
The move drove shares nearly 18% higher at one point on Monday.
That stock's pop lured short sellers. The number of borrowed Kinder Morgan shares shot up by 800% to 60 million after the consolidation plan was announced, according to Astec data.
Securities lending stats are one way to get a real-time feel for what stocks are being shorted.
"There is virtually a one-for-one correlation between when a stock is borrowed and when it is shorted," said Smith.
