Global stocks with short interest at record annual highs
Amongst the turbulence of the markets there are stocks facing strong bearish investor sentiment. We look at global stocks which have seen short interest reach annual highs over the past week including; RealD Inc (NYSE:RLD), Dolby Laboratories (NYSE:DLB), Meyer Burger Technology AG (SWF:MBTN), USG Corp (NYSE:USG) and Canon Inc ADR (NYSE:CAJ).
RealD Inc, the global industry leader 3D technology equipment, has been the subject of growing negative investor sentiment over the past quarter. Short interest has increased at an exponential rate from 2% to 14% of total shares outstanding on loan since January. However, the lendable quantity, which can be used as a proxy for institutional ownership, is low but continues to increase. Currently 11% of the total shares outstanding are available to lend. RealD competes directly with MasterImage, and while over the fourth quarter of 2010 RealD installed 11,300 cinema systems, and MasterImage only 3,000, Bloomberg has recently reported that MasterImage has received an investment of USD 15 million from Samsung Electronics Co. Competitor, Dolby Laboratories, which saw short interest peak at 3.5% in December has since seen its share price tumble and short sellers have covered their positions. Currently it sees 1% of total shares outstanding on loan.
Meyer Burger Technology AG, the maker of industrial cutting equipment has seen it share price surge to levels similar of those in 2008. However, investors seem split in opinion as short interest peaks at an unprecedented high of 23.4% of total shares outstanding on loan, having risen from levels averaging 5% in November. Institutional ownership is low but has been consistently rising over the past year. Currently, 18% of the total shares outstanding are being held by large funds who lend.
Construction company, USG Corp may be amongst the attendees of the world’s largest construction trade show, which opened in Las Vegas earlier this week. The stock has seen recovery in its share price after having reached a low of USD 11.34 in the last quarter of 2010. However, short interest continues to build, reaching a new annual high of 12.7% of total shares outstanding this week. Institutional ownership also continues to decrease with a 4% change over the past week. Falling institutional ownership combined with increasing short interest has resulted in 70% of the lendable supply currently out on loan.
The recent three-day rally of ADRs of large Japanese companies following the disaster was led by Canon ADR. However, it was also reported by Reuters as one of the heaviest losers as the markets refocused on the current global uncertainty. Short interest in Canon ADR has surged from 0.08% to 0.18% of total shares outstanding on loan. Short interest of this stock which is not commonly traded in securities lending is currently at an annual high. The lendable supply is only 0.3% of total shares outstanding, which has led to almost 40% of the lendable supply being currently out on loan.
