Elevated Short Interest in Teck, BHP Signals Potential Opportunity
Dow Jones11-05
0152 GMT - Short interest across some top miners has risen modestly over the past 20 weeks, Jefferies says. It thinks that reflects moves between individual stocks rather than a broadbased rise in bearish positioning. "Nevertheless, company-specific extremes are noteworthy," it says. Teck's short interest, at 2.97% of its free float, is around the 93rd percentile of its five-year range, says the bank. In BHP's ADRs, short interest is 0.76%--which might appear modest, but ranks near the 97th percentile of its own range over the same period, Jefferies says. Those levels point "to a potential contrarian opportunity given both names have outperformed in the periods following extremely elevated short interest," says the bank.
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