Increased Short Interest in Guaranty Financial

Guaranty Financial Group (GFG), the Texas-based bank, lost $10 million in the first quarter, CNN Money said on Tuesday. The bank, whose four segments include commercial and retail banking, and insurance and treasury, has set aside $58 million to cover loans it does not expect to be repaid.

11% of Guaranty's Market Cap is on Loan to short investors today, an increase of 550% since early March (please see graph). Utilisation is 40%, so there is still 60% of the available supply left to borrow. For those investors who believe that the price will rise (from 8.5USD today), there are 24 Days to Cover. The average Utilisation for the rest of the US Small Caps is 20%, for the rest of the North America Banks it is 22%. Other stocks in the sector with a high %MCOL include Indymac Bancorp (IMB) at 38% and Washington Mutual (WM) at 31%.