Manitwoc Seeing Increase in Short Interest

U.S. diversified manufacturer Manitowoc (NYSE: MTW) has increased its offer for British kitchen equipment maker Enodis (London: ENO) to 1.08 billion pounds to trump a rival offer. Manitowoc said on Monday that it was offering 294 pence a share for Enodis, topping an agreed bid of 282 pence a share from U.S. rival Illinois Tool Works (ITW). Enodis shares rose 2 percent to 304 pence by 8.05 a.m, according to Reuters.

Enodis, who supplies companies such as Macdonald's (MCD) and Burger King (BKC) with fryers, has just 0.9% of its Market Cap on Loan (%MCOL) to short sellers. Utilisation is at just 3.7%. As is typical of a bidder, Manitwoc, who is paying a dividend of on May 30th (as seen by the spikes; the last dividend was only 0.05% yield) has seen an increase in short interest over the past year.

In May 2007, 0.6% of its shares were on loan, and this figure has now risen to 6.3% (please click to enlarge chart).

Utilisation for Manitwoc is at 17%, so there is still plenty left to borrow if short investors believe that this bid price will grow up. The average Utilisation for the rest of the S&P500 is 7.6%, and for the rest of the North America Capital Goods it is 10%. For those wishing to close out their short positions in Manitwoc, there are 11.3 Days to Cover.

Comments

[Urbane Gori...:]

I'm guessing the shorts would go away if they cancelled their desire for the cookware company .. Well.. Then again, maybe they need some short-order cooks! ... What's next, Tupperware? .. It dropped again today and I almost re-purchased... Hmmm...

Thx jegan ;-)

2008 May 19 04:22 PM

[RSH:]

When reporting on a company, please spell it's name correctly.

MANITOWOC

2008 Jun 04 12:34 AM