Markit names 2014's best-timed shorts
18 December 2014 London
Image: Shutterstock
The best-timed short sales of 2014 within 2000 of the largest European companies at the start of the year have been revealed on a new list by Markit.
On the most successful end of the scale, 104 companies have seen their shares fall by more than 20 percent since a fresh new annual high in demand to borrow.
Across 2014 just under a quarter of European companies have been targeted by short sellers, with 457 companies making at least one appearance.
According to Markit, short sellers have been largely successful at targeting underperforming shares as the companies that make the list have seen their shares fall by 3 on average.
Energy firms make up one third of the top 20 most successful short sales this year.
The most successful energy short sales go to Polarcus, closely followed by Akastor.
Both firms provide auxiliary services to the oil and natural gas industries and have come under significant pressure in the wake of a 50 percent decline the price of crude.
Polarcus has seen shares decline by 85 percent and Akastor is down 81 percent.
Online video advertising platform, Blinkx came under short selling scrutiny in late 2013 and was a “top three” short in European markets in 2014, according to the report.
The stock is down 88 percent with shares outstanding and stock price peaking in January and February of 2014 at 12.6 percent and 209p respectively. The stock currently trades near 25p.
New World Resources, a central European coal and coke producer, has been the second best performing short sale for 2014.
The company filed for chapter 15 Bankruptcy in July in an effort to reorganize and restructure its debt. The share price is down 97 percent.
Narrowly beating New World Resources on Markit’s list, by 0.2 percent, is embattled pub operator Punch.
The group’s share price is down over 97 percent as what Markit has called a “hefty dilution” had to be incurred in order to fend off total collapse.
It managed to forge ahead with a restructuring plan in October 2014 and the company’s debt burden, built up in the early 2000s, has been partially converted into equity.
Markit’s analysis is based on a weekly screen of the companies seeing a fresh new 52 week highs in short interest, among those that see more than 3.0 percent of shares out on loan.
On the most successful end of the scale, 104 companies have seen their shares fall by more than 20 percent since a fresh new annual high in demand to borrow.
Across 2014 just under a quarter of European companies have been targeted by short sellers, with 457 companies making at least one appearance.
According to Markit, short sellers have been largely successful at targeting underperforming shares as the companies that make the list have seen their shares fall by 3 on average.
Energy firms make up one third of the top 20 most successful short sales this year.
The most successful energy short sales go to Polarcus, closely followed by Akastor.
Both firms provide auxiliary services to the oil and natural gas industries and have come under significant pressure in the wake of a 50 percent decline the price of crude.
Polarcus has seen shares decline by 85 percent and Akastor is down 81 percent.
Online video advertising platform, Blinkx came under short selling scrutiny in late 2013 and was a “top three” short in European markets in 2014, according to the report.
The stock is down 88 percent with shares outstanding and stock price peaking in January and February of 2014 at 12.6 percent and 209p respectively. The stock currently trades near 25p.
New World Resources, a central European coal and coke producer, has been the second best performing short sale for 2014.
The company filed for chapter 15 Bankruptcy in July in an effort to reorganize and restructure its debt. The share price is down 97 percent.
Narrowly beating New World Resources on Markit’s list, by 0.2 percent, is embattled pub operator Punch.
The group’s share price is down over 97 percent as what Markit has called a “hefty dilution” had to be incurred in order to fend off total collapse.
It managed to forge ahead with a restructuring plan in October 2014 and the company’s debt burden, built up in the early 2000s, has been partially converted into equity.
Markit’s analysis is based on a weekly screen of the companies seeing a fresh new 52 week highs in short interest, among those that see more than 3.0 percent of shares out on loan.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
