Short Interest in Management Consultants et al

Accenture Ltd (ACN), the New York-based management consultancy service, has seen a significant rise in short interest in the last eight to nine months. In October 2007, the company, who specialise is technology sector, had just 1% of its Market Cap on Loan (%MCOL) to short investors. By January this year, it had 3.8% MCOL, although since then investors have begun to close out their positions as the price starts to rise. There are 13 Days to Cover for those who wish to buy back shares and take profits. Utilisation is at only 8%, so there is still plenty left to borrow. The average Utilisation for the rest of the US Small Caps is 18%, and for the rest of the North America Software Services it is 12%; in fact the sector in general has remained between 9% and 12% Utilised, which is a very low percentage, for the past two years. (Click any chart to enlarge.)

Equifax (EFX), another global provider of solutions for businesses and consumers (which includes credit reports for those seeking to obtain mortgages etc), has also seen a rise in its short interest; from 4% in October 2007 5.6% today. Utilisation is at 24%, and there are 17 Days to Cover. The average Utilisation for the rest of the S&P500 is 7%, and for the rest of the North America Consumer Services and Supplies it is 15%, although this sector has increased 50% in the past two years.

Administaff (ASF), who provide Personnel Management Systems including benefits and payroll administration, has 9.3% MCOL, with 28% Utilisation. There are 13 Days to Cover. The average Utilisation for the rest of the Russell2000 is 35%, and it is also a member of the Consumer Supplies Sector.

Information Services Group Inc (III), who provide fact-based sourcing advisory services, has 13% MCOL, up from 10% last October. It is 52% Utilised, and is also issuing a convertible bond for January 2011.

Comments

[Harriet33]

Thank you very much for this very informative article.

[Wizkid]

For those with limited understanding of short interest - what is your conclusion? Define Utilisation.

[alfedogarcia]

Accenture is not New York based. It is incorporated in Bermuda with US headquarters in Chicago.

[Rakesh]

With headquarter in Bermuda....


On May 16 07:55 PM alfedo garcia wrote:

> Accenture is not New York based. It is incorporated in Bermuda with
> US headquarters in Chicago.