Short Story: Hurco

 

US Industrial Technology company Hurco (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%.

Comments

[mpharbold1:]

You may be right, but you haven't laid out much of an argument as to why shares will fall further. Some compelling data to support your argument would be welcome.

2008 Jun 02 11:13 PM