Tui AG (ETR:TUI1)

We look at the companies in North America, Europe and Asia announcing earnings this week that have seen the most interesting short flow in the month ahead of results.

North America

The most shorted company reporting next week is troubled nuts producer, Diamond Foods which has 35% of its shares out on loan. Short sellers have covered their positions slightly since February when short interest stood at nearly 50% of shares (See Chart) prior to the company coming forward with accounting irregularities.

January is a crucial month for the Travel and Tourism sector, with up to 15% of summer holidays predicted to be booked this month. But the sector has been rocked again by Thomas Cook, which has hit another stumbling block with the lack of confidence in Carnival Cruises since the recent disaster in Italy. We drill further into the sector to highlight others subject to high or rising short interest.

It is not unusual for tour operators to run low on cash during the slower winter months, but the recent announcement by Thomas Cook about deteriorating trading and its plans to expand borrowings has shocked the markets. We use securities lending flow to highlight increasing levels of short interest in the main names, but note this negative sentiment is not shared by institutional investors who lend, who have, in the main, increased their holdings over the past month.