Eye on Short Interest at GM, Assured Guaranty

US sales for GM fell 21% in the April to June period, as record gasoline prices continue to curb demand for larger vehicles, such as GM's Chevrolet Tahoe sport-utility car. Short investors already had 25% of GM's Market Cap out on Loan (%MCOL) in April, but that figure rose to 40% in late June, with positions being covered slightly to take that number down to 32% today. Utilisation is extremely high at 85%, and there are 41 Days to Cover.

Another interesting stock which came up on my alerts today is Assured Guaranty (AGO), a Bermuda-based company that provides credit enhancement products to mortgage markets. You will see from this graph that short investors started to increase their positions in this company in early June, when the %MCOL was 10%, to today's figure of 27%. You can also see the large spike in the borrow last week rise up to 37% as the price dropped from $17 to $11. Again, Utilisation is extremely high at 87%.

Comments

[helplessobs...:]

Wilber Ross has a big interest in this company so readers need to keep this stock on their screens in case the shorts have this puppy wrong.

2008 Jul 26 01:35 PM