11 December 2019
Source: Company accounts and Edison Investment Research
Cineworld Group had 9% of its issued share capital shorted in December and was the UK’s most shorted stock that month. Short positions increased by c 2% from November to December, reflecting a weak industry release schedule and concerns that online streaming services are adversely affecting box office revenues. The group announced a $2.1bn acquisition of Canada’s Cineplex in December, with Mooky Greidinger, CEO, commenting that the acquisition ‘will create the leading North American cinema operator with unrivalled scale and opportunity’. Following the announcement Cineworld’s share price climbed to 227p (+10%); the group’s share price is currently c 222p.
SIG was the second most shorted stock in December with 7% of its issued share capital shorted during the month. The roofing and building materials company issued a profits warning in October; subsequently brokers cut their FY19 net profit forecasts by between £10m and £15m to c £70m.
Petrofac, Pearson, NMC Health, Greencore Group, EasyJet and AA are new additions from the top UK shorts in the December list, previously not appearing in the November list.