Vallourec's Short Interest Should Decline on BP's Big Oil Find

Includes: BP, VLOUF
by: Data Explorers

The short interest (as measured by Percent Shares Outstanding On Loan) for Vallourec Sa (OTCPK:VLOUF) has dropped 1.34% over the past week and now stands at 11.6%. This is down 51.18% from the 52 week high hit on June 11, 2009. Even though the short interest has decreased over the past week, when compared to other Europe Machinery companies, the short base is well above the average of 2.35% for the sector.

Over the past week the Negative Sentiment Indicator (DNS) for VK was unchanged. It remains in the tenth decile, indicating a high amount of negative short sale sentiment for the security. The Price Squeeze Indicator (DIPS) remained unchanged and continues to be in the first decile which indicates a low probability of a price squeeze. However the recent news of the BP (NYSE:BP) discovery of oil in the Gulf of Mexico has been taken very positively by the market as they interpret this as good news for Vallourec and we could expect to see a fall in the short base.

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