IHS Markit: Shorts up at Diebold Nixdorf
10 August 2018 New York
Image: Shutterstock
As stock in debt-laden US automated teller machine manufacturer, Diebold Nixdorf fell 10 percent yesterday, according to Samuel Pierson of IHS Markit.
Pierson said: “On 1 August Diebold Nixdorf reported a US$0.21 per share loss on better than expected revenues, sending shares into a tailspin as analysts had forecast a $0.01 per share profit, per Factset.”
“In the week since the report shares have fallen more than 50 percent, reaching the lowest point since the firm’s initial growth phase in the early 1980s.”
Pierson added: “Equity shorts have increased their position by 3.4 million shares since 1 August, for a total of 29.3 million shares or 31 percent of free float. In dollar terms the position has been taken down from a year-to-date high of $352 million on April 30 to $150 million at present, owing to the declining share price.”
He continued: “Notably, short demand for the 8.5 percent 2024 bond has also spiked following the earnings report, as the bonds have also been in a free-fall, hitting a new low of 67.13 cents on the dollar on 7 August, after having traded down from 92 cents on 31 July.”
“The short position in the 2024s is currently $114 million at par, up from $68 million prior to the earnings report.”
Pierson said: “On 1 August Diebold Nixdorf reported a US$0.21 per share loss on better than expected revenues, sending shares into a tailspin as analysts had forecast a $0.01 per share profit, per Factset.”
“In the week since the report shares have fallen more than 50 percent, reaching the lowest point since the firm’s initial growth phase in the early 1980s.”
Pierson added: “Equity shorts have increased their position by 3.4 million shares since 1 August, for a total of 29.3 million shares or 31 percent of free float. In dollar terms the position has been taken down from a year-to-date high of $352 million on April 30 to $150 million at present, owing to the declining share price.”
He continued: “Notably, short demand for the 8.5 percent 2024 bond has also spiked following the earnings report, as the bonds have also been in a free-fall, hitting a new low of 67.13 cents on the dollar on 7 August, after having traded down from 92 cents on 31 July.”
“The short position in the 2024s is currently $114 million at par, up from $68 million prior to the earnings report.”
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