Markit’s most shorted
11 August 2015 Toronto
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Tidewater, an offshore service vessel provider, is the most shorted company in the US ahead of earnings announcements, according to Markit’s most recent data analysis.
Markit’s short selling analysis cited the continuing fall in oil prices as the key driver behind renewed short interest in Tidewater.
Tidewater suffered a 60 percent fall in stock value over the past 12 months, which encourages short selling activity. The company currently has 46 percent of its shares outstanding on loan.
Encore Capital Group is North America’s second most shorted with 36 percent of shares out on loan. Short interest has risen by 30 percent in the consumer debt recovery firm in the past three months.
A potential interest rate rise in the US in September is contributing to the group’s popularity among short sellers.
On the other side of the Atlantic, the German industrial service company Bilfinger is Europe’s most shorted company ahead of upcoming earnings announcements.
Short interest in Bilfinger grew by 75 percent in the past three months and currently holds at 19 percent. Short selling activity was triggered by a sharp fall in shares value in April, which marked the companies fifth profit warning in under a year.
In the Asia Pacific region, the Chinese residential property developer Vanke and Hong Kong’s Nobel Group dominate the short selling market. However, Vanke now only has 15 percent of shares out on loan as a result of a board-approved share buyback programme, which saw a 25 percent reduction in short selling positions.
The scheme, launched in early July, aimed to prop up the developer’s falling share price.
In contrast, Noble Group has continued to attract increasing numbers of short sellers prior to earnings publications. Up to 77 percent of the companies shares were out on loan in July, reaching 13.6 percent.
Markit’s short selling analysis cited the continuing fall in oil prices as the key driver behind renewed short interest in Tidewater.
Tidewater suffered a 60 percent fall in stock value over the past 12 months, which encourages short selling activity. The company currently has 46 percent of its shares outstanding on loan.
Encore Capital Group is North America’s second most shorted with 36 percent of shares out on loan. Short interest has risen by 30 percent in the consumer debt recovery firm in the past three months.
A potential interest rate rise in the US in September is contributing to the group’s popularity among short sellers.
On the other side of the Atlantic, the German industrial service company Bilfinger is Europe’s most shorted company ahead of upcoming earnings announcements.
Short interest in Bilfinger grew by 75 percent in the past three months and currently holds at 19 percent. Short selling activity was triggered by a sharp fall in shares value in April, which marked the companies fifth profit warning in under a year.
In the Asia Pacific region, the Chinese residential property developer Vanke and Hong Kong’s Nobel Group dominate the short selling market. However, Vanke now only has 15 percent of shares out on loan as a result of a board-approved share buyback programme, which saw a 25 percent reduction in short selling positions.
The scheme, launched in early July, aimed to prop up the developer’s falling share price.
In contrast, Noble Group has continued to attract increasing numbers of short sellers prior to earnings publications. Up to 77 percent of the companies shares were out on loan in July, reaching 13.6 percent.
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