PDF attachedSummary:
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Overall shorts were up 1.01% week on week. We saw an increase in short interest in Government Bonds up by 4.19% and Equities Short Interest increased by 0.11% on the week. Europe was net bought on the week-
Telco, most net bought sector (long buying and short covering). Telco weighting vs MSCI Europe most o/w in over 4 years +9.4pts O/W Consumer Staples net selling (long and short selling) and now U/W -8.6pts, just off 1yr lows of -8.8pts.-
Capital Good shorts +2.3% WoW (30% rise in the last 3 months) outpacing Industrial shorts and EMEA short book. Europe: Capital Goods: One small step forward, one step back {NSN N1A9CT3PR6RL <go>} Consumer Staple shorting seen in both food and beverage – names include UNA NA, ABI BB and DGE LN
Europe OVERVIEW
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Equities short interest saw an increase of 0.11% on the week. -
Consumer staples (3.8%) was the main sector showing an increase in Equity shorts. Telecoms (-2.7%) was the main sector covered. Government bonds saw an increase of 4.19% week on week, Government bonds still account for approx. 18.5% of EMEA short book.
STOCK HIGHLIGHTS
Deal related
OUT1V FH - Outokumpu Shareholders Approve Issue of Max 65 Bln New Shares ( BBG) Borrow is tapped out currently both due to short interest and demand for excess borrow. Last levels 12%, shorts up 2.7% YTD at 12 month highsSEV FP - Eur 350mil CB due 2020 issued. GS, MS, RBS and Scvaloc Gen leads. - GC borrow and expect it to stay that way. Have mainly seen buy covering over the last 2 weeks. SI is low vs historicals. SI estimate 1mm shs mkt wide.SAS SS - SAS Launches SEK1.6b Guaranteed Convertible Bond Due April 2019. Availability was illiquid prior to news and borrow last traded at 8% fee, please call desk for latest availability.Directional
GTO NA – Gemalto Drops as Visa Supports Additional Mobile Payment Systems (BBG). Demand seen today on the back of the news. Supply in the name now tapped out and with ongoing interest and short base over 25% of the float, up 2.25% on the week. We think we will start to see pressure from lenders on rates on this. Borrow last traded at 2.5% fee and nothing available currently.BELG BB – reporting 4Q13 results on 26 Feb. Leading into numbers we have seen a 14% rise in shorts in the last month. Estimate market wide shorts around 25-30mn shs, approx. 8-9% of the company but worth noting short base is over 40days to cover based off 30d average , orrow still GC but worth highlighting recent short trends and high short base leading into numbers .th RSA LN: RSA is considering a rights offering to replenish capital following a scandal at its Irish unit and losses related to flooding in towns along the River Thames and southwest England. A share sale is one of a number of measures being considered and no final decision has been taken, the London- based insurer said in an e-mailed statement yesterday. The company may seek to raise as much as 800 million pounds ($1.33 billion), the Sunday Times reported. Telegraph reports that RSA to cancel div and raise between £300-450m citing unidentified people and a broker research report. SI is at the year high. 250mm shs mkt wide. EKTAB SS Elekta Cuts FY Sales, Ebita Forecast, Due “to lower-than-expected delivery volumes of Leksell Gamma Knife and delays in expected deliveries to emerging markets, the outlook for the full year has been revised,” Elekta says in statement (BBG) Estimated short interest 21% shs outstanding, up 10% on the month and up 12% YTD. Borrow is GC currentlyIM NA - Imtech Says Fully Cooperating With Swiss Justice Department, Imtech says investigation started, will publish results when available, commeting in e-mailed statement. Rejects any unethical business behavior (bbg) IM NA - shorts increased 3% on the day and estimated short interest is now estimated at 10% of free float, approx 46mm shs, we currently tapped out.UG FP - Net debt at end of 2013 was 4.14 bn vs. consensus 4.5 bn. Operating loss of e177 mm is better than consensus above 200 mm. Agreed to bring in Chinese partner Dongfeng Motor Corp. and France as investors as part of a 5.27 billion-euro ($7.26 billion) rescue plan to fund new vehicles. Peugeot will shore up financing by selling new stock and warrants and setting up auto-loan joint ventures with Banco Santander..The carmaker also renewed a 2.7 billion-euro credit line with banks (BBG) Estimated short interest is 7.3% of free float, down 28% on the month, borrow now extremely illiquid with last levels 7.5% fee.POP SM - BANCO POPULAR: 88.1% of shareholders have chosen to collect new shares on the last scrip dividend while 11.9% have chosen to sell their rights to POP under guaranteed purchase price. Therefore POP will issue 14,399,623 new shares that are expected to start trading in the coming days. (CNMV). We have mainly seen buy covering over the last month. Short interest estimate is 25mm shs mkt wide (just over a days volume). This is medium vs historicals.