shortside's  Instablog

Send Message
Astec Analytics, a division of SunGard Data Systems, provides investors with short selling market color using data from the securities lending market.
My company:
SunGard Data Systems
  • As TurboTax continues to prosper, brick and mortar tax prep firms such as Jackson Hewitt suffer 0 comments
    Mar 23, 2011 9:11 AM | about stocks: JHTXQ, HRB, INTU

    Short sellers are jumping into the JTX trade.  After trending down, the number of shares borrowed began to increase in early January this year.  Short interest is a high 25% of float as of the end of February.  The number of shares borrowed has held steady over the past few weeks but as some institutional investors sell shares and reduce supply, borrowing costs quickly escalate up to 1800 bps fee to borrow.

    HR Block has a relatively high degree of shorting at 10% of float at the end of February, but is not showing high borrowing costs in Short Side. 

    Both companies have suffered as revenue from Refund Anticipation Loans (RALs) have diminished significantly.  In HRB's case, HSBC refused to provide the credit for RALs this year.  That being said, RALs only accounted for $146 million of HRB's $4 bn in revenue in 2010.  HRB is making a push to increase the popularity of its online product, but so far it's not working out too well.  In 2010, roughly 25% of the returns prepared by HRB were done on its online platform versus in-store.

    The chart below is JTX's shares borrowed and borrowing costs over the prior 15 months.

    Stocks: JHTXQ, HRB, INTU
Back To shortside's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.