Short Story: Hurco

Jun. 2.08 | About: Hurco Companies, (HURC)

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US Industrial Technology company Hurco (NASDAQ:HURC) has seen a surge in short interest over the past year. Back in May last year, the company had 4% of its Market Cap on Loan [%MCOL] to short investors - that figure has now risen to 16.6%.

Reuters reported on May 23rd that HURC had posted a second-quarter profit that missed Wall Street's estimates, "hurt by pricing pressures and increased product costs, sending its shares tumbling as much as 19%." It is in the last three months that the short interest has really started to rise; up from 10% on February 25th to today's figure.

Utilisation is at just 43%, which means there is still plenty left to borrow. There are 7.45 Days to Cover and 33% of the Market Cap is Lendable. The average Utilisation for the rest of the North America Capital Goods sector is 9.5%, and for the rest of the US Small Caps it is 18%.