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Alcoa’s fourth quarter earnings have marked the unofficial start of the earnings season. Reuters has reported that S&P 500 earnings are expected to have risen by 7.8% on the year, down from a July forecast of 17.6%. Amongst those reporting earnings this week, there are a number of heavily shorted stocks. • Short interest in Alcoa Inc falls to annual lows of 2% of total shares. • Supervalu Inc is the most shorted large cap’ stock reporting earnings this week, with 30% of total shares outstandin...
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Sentiment in the U.S. Software and Services sector took a pleasant u-turn in the final quarter of 2011 after the sector became increasingly short in the first nine months of the year. However, the sector has been increasingly targeted by short sellers over the past month as it saw more stocks reaching new annual highs in short interest than any other sector. Companies covered include OpenTable Inc (NASDAQ:OPEN), Alliance Data Systems Corporation (NYSE:ADS), KIT digital, Inc. (NASDAQ:KITD), Vis...
Aggressive pre-Christmas discounting by UK retailers desperate to woo the consumer is expected to negatively impact profit margins, according to the Financial Times as short sellers continue to target the sector. Companies covered include: Next Plc (LON:NXT), Carpetright (LON:CPR), Home Retail Group (LON:HOME), Marks & Spencer (LON:MKS) and Ocado (LON:OCDO).
Carson Block and fellow short-sellers mange to consistently predict underperforming shares over the last year despite record breaking volatility in global equity markets. Last year has been tough for stock pickers as exemplified by the 19.3% fall in the equity hedge index. The leading cause of this has been the macroeconomic environment with political uncertainty on both sides of the Atlantic. Add to the mix a series of high profile corporate implosions and the questionable accounting practice...
The life insurance industry has been forced to adjust against a backdrop of exceptionally low interest rates in search of higher returns. In doing so, some names have attracted the attention of short sellers. Stocks covered include: Moves by giants Sun Life Financial and Standard Life Assurance have seen the industry gradually realize it needs to adapt its policies in the face of volatile stock markets and the low interest environment, which increasingly seem to be the norm. The industry is mo...
Looking back at predictions this time last year Facebook was the most anticipated IPO for 2011. Twelve months on and we are still left guessing with rumors of an IPO in the second quarter of 2012. That said, high profile internet IPOs including LinkedIn and Groupon have led the way for 2011 despite setbacks and delays in the wake of market turmoil in August. We look at investor sentiment towards companies (over USD 250 million market cap) that floated during the year including; Groupon Inc (NA...
What has piqued hedge fund interest in European Technology Hardware and Equipment firms? The sector sees heavy demand to borrow the shares, with a sixth of the available supply for lending currently out on loan, making it the second most utilized sector after Consumer Durables. Although average short interest is low at 1.3% of total market cap, European Technology Hardware and Equipment firms have recorded the greatest number of stocks reaching new annual highs in short interest, including Alc...
We look at whether there is a strong crossover between U.S and UK companies with large pension deficits and those with high short interest. We have found that companies that have large pension deficits do have higher short interest and we try to understand why. Looking at the pension deficit as a proportion of market cap we find that the most shorted shares in the UK market have large pension deficits. Shares highlighted include Thomas Cook (LON:TCG), Dixon Retail (LON:DXNS), Mothercare (LON:M...