Short sellers focus on tech and commodities
25 October 2016 London
Image: Shutterstock
Technology and commodities companies took up the bulk of short sellers attention ahead of earnings announcements next week, according to IHS Markit.
Satellite telephone provider Iridium Communication became the most shorted with just under a third of its shares out on loan, while the largest pre-earnings jump in shorting activity was claimed by short sellers’ favourite, Fingerprint Cards, which saw a 59 percent jump in demand to borrow its shares over the past month.
In a research note on short selling activity ahead of earnings, IHS Markit highlighted that short interest in Iridium Communication surged after its launch partner Space X saw one of its rockets explode on the launch pad.
In the commodities market, speciality metal firm Allegheny Technologies, steelmaker AK Steel and mineral producer Compass Minerals all came under the spotlight, with all three seeing more than 20 percent of shares out on loan.
“Short interest activity in the sector [commodities] shows no signs of slowing down despite the fact that the recent stability in the commodities space has seen shares rebound across the board,” explained IHS Markit analyst Simon Colvin.
Satellite telephone provider Iridium Communication became the most shorted with just under a third of its shares out on loan, while the largest pre-earnings jump in shorting activity was claimed by short sellers’ favourite, Fingerprint Cards, which saw a 59 percent jump in demand to borrow its shares over the past month.
In a research note on short selling activity ahead of earnings, IHS Markit highlighted that short interest in Iridium Communication surged after its launch partner Space X saw one of its rockets explode on the launch pad.
In the commodities market, speciality metal firm Allegheny Technologies, steelmaker AK Steel and mineral producer Compass Minerals all came under the spotlight, with all three seeing more than 20 percent of shares out on loan.
“Short interest activity in the sector [commodities] shows no signs of slowing down despite the fact that the recent stability in the commodities space has seen shares rebound across the board,” explained IHS Markit analyst Simon Colvin.
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