General Motors: Short Interest Decreases with Share Price

General Motors (GM) and Chrysler LLC will probably need a new agreement with the United Auto Workers for union-run medical trusts before the money-losing automakers can complete a merger, people familiar with the matter said (Bloomberg).

According to the data, short investors have been reducing their positions in GM, with some marked covering most recently, believing that the next move in share price is to be up rather than down. However, the stock was down 6.5% Thursday (at 1700 GMT), but, short interest is at a two-year low, with investors believing that the stock might finally be back on the road to recovery. It will be interesting to see the activity over the next two business days. Utilisation is still high at 75%, and has decreased from 90% during the period of August and September.

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