Charts of several stocks with recent spikes in borrowing cost 0 comments
Jun 7, 2011 10:47 AM
The stocks below were on the list of "biggest changes", but I thought these charts showed interesting movements, specifically how quickly the cost-to-borrow increased. An increase in cost-to-borrow indicates that short sellers are asking their prime brokers to short an ever-greater number of shares and/or the supply of shares is becoming constrained. If long holders recall their loaned shares either because they want to squeeze the shorts or they want to sell their positions, it would put even greater pressure on borrowing costs and worst case scenario for shorts sellers is that they might have to buy in to close out their positions.
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Charts of several stocks with recent spikes in borrowing cost 0 comments
The stocks below were on the list of "biggest changes", but I thought these charts showed interesting movements, specifically how quickly the cost-to-borrow increased. An increase in cost-to-borrow indicates that short sellers are asking their prime brokers to short an ever-greater number of shares and/or the supply of shares is becoming constrained. If long holders recall their loaned shares either because they want to squeeze the shorts or they want to sell their positions, it would put even greater pressure on borrowing costs and worst case scenario for shorts sellers is that they might have to buy in to close out their positions.
SINO CLEAN ENERGY INC
PURE BIOSCIENCE INC
CHINA VALVES TECHNOLOGY INC
AVANIR PHARMACEUTICALS INC
CHINA PRECISION STEEL INC
LUCAS ENERGY INC
CHINA FIRE & SEC GROUP INC
LIFE PARTNERS HOLDINGS INC
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.
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