Short Sellers Target VCG Holding

Apr.27.08 | About: VCG Holding (VCGH)

VCG Holding (NASDAQ:VCGH), who, according to Google Finance "operates nightclubs that provide 'live' adult entertainment," has become the target of short sellers as of late. The data shows that the company, who operates The Penthouse and 'Tabu' clubs in Denver, Colorado, has 5.52% of its Market Cap out on Loan (%MCOL) to short investors. This is an increase from 2% last October.

More recently shorts have been covered, even though the price is still falling; down from 12USD in February to 4USD Friday. Perhaps more interestingly, VCGH is 90% Utilised, and with a %MCOL that is not particularly high, it is obvious that this stock, rather like some of the employees of VCGH, is expensive to borrow. The average Utilisation for the rest of the US Small Caps is 20%, and for the rest of the North America Customer Services it is 20%.