Fingerprint Cards (FINGB SS), the Swedish based developer of personal identity recognition via fingerprint technology, has been one of the most popular European stocks to short since June.
According to the S3 Velocity Indicator, a measure of the real-time relative change in shorting activity, the slopes of all trend lines (7, 30 and 90-day) have displayed continuous demand for shorting despite elevated borrow fees ranging from 30-50% fee during this time period. Current short interest is now estimated to be closing in on $550million of short exposure, up close to 40% over the past three months.
Even a proposed bid last month by a Chinese tech company has not discouraged the shorts from piling on. Conviction is firm enough that nine hedge funds have accumulated a short position of at least .50% of the shares outstanding, breaching the requirement threshold implemented by the European Securities and Market Authority to disclose their bearish bets to the public.
With the company set to announce Q3 results at the end of October, this should be the next catalyst on whether or not more fingerprints are left on the sell button.
For more information on the above analysis, please contact:
Matthew Unterman, Director, S3 Partners, LLC
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