Stock Alert – Pandora AS

Last week Copenhagen-based jewellery maker Pandora (CPH:PNDORA), which listed on the Danish market in October 2010 at a valuation of €5bn, disappointed investors after its unit price rises failed to match the surging cost of gold and silver. The FT’s Alphaville blog also noted that analysts were worried about the company’s ongoing reliance on charms. Shorts called this one right and have been building their positions since mid march. Short interest now stands at a record high with 10.8% of the total shares outstanding on loan, which represents almost 70% of the shares that are available to be borrowed. This means it would be hard to short more of the company.