Bear Stearns Inc (BSC), which was the biggest decliner on the New York Stock Exchange today - down 31.53%, has also seen a significant rise in the percentage of its Market Cap that is on loan (%MCOL) to short investors.
The FT reported this afternoon that Bear had arranged for emergency funding from JP Morgan and the Federal Reserve Bank of New York because its liquidity position had "significantly deteriorated."
The %MCOL really started to rise in early February - from 15% then, to 23% today (please see graph). Utilisation is at 50% which means there is still half of the available stock left to borrow. The average Utilisation for the S & P 500 is 8%, and for the rest of the North America Diversified Financials it is 12%. For those investors who wish to buy back shares in Bear, there are 5.74 Days to Cover.
Bear Stearns was one of Data Explorers' "Best-Timed Shorts of 2007," which you can see by clicking here.
Hi...
I`m from Argentina. I usually read your post about short position. Really, It wonderful your info for minoritaries invertors.
The reason I`m writting is to ask you a favor. Could you post about DBA?. I had info about the short position in the found had raised. I would like to confirm it.
Thanks for all...
Mauro
Posted by: MauroMazza | March 17, 2008 at 11:09 PM
Hi...
I`m from Argentina. I usually read your post about short position. Really, It wonderful your info for minoritaries invertors.
The reason I`m writting is to ask you a favor. Could you post about DBA?. I had info about the short position in the found had raised. I would like to confirm it.
Thanks for all...
Mauro
Posted by: MauroMazza | March 17, 2008 at 11:10 PM
Bear Stearns = Barren Asset
Posted by: cakesy | March 18, 2008 at 09:05 AM
Finally.. it was true. DBA has collapsed. The commodities as asset to break trend. And the shorter won once again. As they usually do us.
Mauro
Posted by: MauroMazza | March 19, 2008 at 11:51 PM