Hanweck reveals new Borrow Intensity Indicator results
04 May 2018 New York
Image: Shutterstock
Hanweck, a risk analytics provider, has revealed the results of its new application, Borrow Intensity Indicator.
The application showed relative changes in firm’s 45-day Borrow Intensity (BI). The indicator enables Hanweck to screen moves that are statistically relative to the companies’ recent history changes.
This particular screening method is sensitive to small changes if the name has shown recent stability in BI but has departed from that pattern either positively or negatively.
Chart one, on BI for 45-day relative major moves (as of 30 April), revealed that Altisource Portfolio Solutions (ASPS) has been steadily trending to less hard-to-borrow (HTB) even prior to recent earnings in late April.
Chart 1: Hanweck Borrow Intensity 45-Day Term Relative Major Movers (as of 4.30.18)
The second chart showed the behaviour of ASPS, BI Snapshot. It revealed that Vuzix Corp (VUZI) is largely hard-to-borrow (HTB) with recent measures near 15 percent. But, is easing towards reduced BI as the earnings date approaches.
Additionally, VUZI is a low priced stock, which can make BI series less stable, but the recent trend is consistent with 45-day and 180-day values converging as BI moves toward minus 15 percent.
Chart 2: Altisource Portfolio Solutions (ASPS) - Borrow Intensity Snapshot
Chart three, VUZI BI Snapshot revealed that AMC Entertainment Holdings (AMC) has remained HTB, with a recent rising short condition evident as earnings approach.
The chart showed that the 45-day series is showing greater momentum in the move towards minus 8 percent. But, the 180-day has been near the minus 4 percent level, which suggests long-term dislocation in the lending market for AMC.
Chart 3: Vuzix Corp (VUZI) - Borrow Intensity Snapshot
Meanwhile, chart five, Hanweck BI 180-day Term Absolute Major Movers (as of 30 April), showed company names such as Energous Corp (WATT).
According to the results, WATT proved to be as widely recognised as significantly HTB, and some names showed signs of becoming or returning to HTB conditions.
Chart 5: Hanweck Borrow Intensity 180-Day Term Absolute Major Movers (as of 4.30.18)
Chart six, Hanweck BI: Trupanion (TRUP), showed that it is a significant rising short, with 45 and 180-day BI moving below minus 2.5 percent.
Chart 6: Trupanion (TRUP) - Borrow Intensity Snapshot
The application showed relative changes in firm’s 45-day Borrow Intensity (BI). The indicator enables Hanweck to screen moves that are statistically relative to the companies’ recent history changes.
This particular screening method is sensitive to small changes if the name has shown recent stability in BI but has departed from that pattern either positively or negatively.
Chart one, on BI for 45-day relative major moves (as of 30 April), revealed that Altisource Portfolio Solutions (ASPS) has been steadily trending to less hard-to-borrow (HTB) even prior to recent earnings in late April.
Chart 1: Hanweck Borrow Intensity 45-Day Term Relative Major Movers (as of 4.30.18)
The second chart showed the behaviour of ASPS, BI Snapshot. It revealed that Vuzix Corp (VUZI) is largely hard-to-borrow (HTB) with recent measures near 15 percent. But, is easing towards reduced BI as the earnings date approaches.
Additionally, VUZI is a low priced stock, which can make BI series less stable, but the recent trend is consistent with 45-day and 180-day values converging as BI moves toward minus 15 percent.
Chart 2: Altisource Portfolio Solutions (ASPS) - Borrow Intensity Snapshot
Chart three, VUZI BI Snapshot revealed that AMC Entertainment Holdings (AMC) has remained HTB, with a recent rising short condition evident as earnings approach.
The chart showed that the 45-day series is showing greater momentum in the move towards minus 8 percent. But, the 180-day has been near the minus 4 percent level, which suggests long-term dislocation in the lending market for AMC.
Chart 3: Vuzix Corp (VUZI) - Borrow Intensity Snapshot
Meanwhile, chart five, Hanweck BI 180-day Term Absolute Major Movers (as of 30 April), showed company names such as Energous Corp (WATT).
According to the results, WATT proved to be as widely recognised as significantly HTB, and some names showed signs of becoming or returning to HTB conditions.
Chart 5: Hanweck Borrow Intensity 180-Day Term Absolute Major Movers (as of 4.30.18)
Chart six, Hanweck BI: Trupanion (TRUP), showed that it is a significant rising short, with 45 and 180-day BI moving below minus 2.5 percent.
Chart 6: Trupanion (TRUP) - Borrow Intensity Snapshot
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