Another Day, Another Airline

We have seen the increase in short interest in Cathay Pacific (CPCAY), American Airlines (AMR), and British Airways (BAIRY.PK) over the past six months. Northwest Airlines (NWA), a US Small Cap company, has also seen a significant rise in the percentage of its Market Cap on Loan (%MCOL), from 3% on May 21st, to 5% today. This is juxtaposed with a drop in share price - from 9.3USD on May 15th, to 1USD today, showing that although profitable trades will no doubt be made, investors perhaps increased their positions 6 days too late (please see graph; click to enlarge).

However, Utilisation is at 20%, so there is still 80% of the supply left to borrow should short sellers think that the price will drop further. For those who disagree, there are 8 Days to Cover. 25% of the Market Cap is Lendable. The average Utilisation for the rest of the US Small Caps is 18%, and for the rest of the North America Transportation it is 13%.