According to our data, there has been a recent rise in the short interest of Rentokil (RTO). The company’s %Market Cap on Loan (%MCOL) rose from 3.8% on December 20th to 4.7% today. On December 17th the volume of shares traded rose from the company’s average of 10m to 50m, so presumably this is when short sellers really started to increase their positions.
The FT’s Lex column reported today that the services conglomerate’s shares fell by a fifth in 2007, enough to see the company drop out of the FTSE 100 at the next rebalancing. As you can see from this graph, the price started to fall in late October, down from 175GBP then, to today’s price of 120GBP.
Although Utilisation has decreased since mid-July, from 30% down to 10%, like the %MCOL, it has increased in the last week, from 10% to 17% today. The company’s demand for supply has now overtaken the rest of the EMEA Commercial Services and Supplies sector, so it will be interesting to see if investors believe the share price will fall further, which could also mean a further surge in the borrow.