Dearie me – what an atrocious headline.
Shares in Manchester United are down more than 6 per cent since its JOBS Act-abetted listing on the New York stock exchange less than a fortnight ago. It’s not atrocious so much as a case of gravity (erratically) setting in, you could say, amid some iffy capex spending.
But as for short interest in the stock…
Some interesting stats from the short-selling specialists at Markit on Monday, revealing that 1.4m of Man U’s 16.6m class-A shares were out on loan as of the Friday close (remember this was a fairly small float):
This represents 8.4% of the freely traded shares and makes MANU the 14th most shorted global IPO of the last year
Lenders are currently charging the highest price score of 10 to investors looking to borrow shares according to our cost scale of 1 to 10
The supply of shares for investor looking to borrow to go short is also getting pretty tight with nearly 60% of available shares already out on loan
According to Markit, Facebook and Groupon are the fourth and sixth most-shorted IPOs on the list, incidentally…
Sky-blue thinking – Simon Kuper