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The Western Union Company Message Board

  • wuthemistake wuthemistake Mar 27, 2013 11:04 PM Flag

    Anyone notice Short Interest went to 23,423,508 as reported on 3/15/2013

    This is close to double the amount of shares reported for any period in the past year!!!
    Someone is really betting this tanks, for either bad results or bad market. Not a good sign!

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    • redheadinvestor Mar 28, 2013 11:20 AM Flag

      What matters with short interest is not the size reported, but the days to cover (the size v. the typical volume in the period). This remains in the 1-2 DTC range and is not uptrending.

      If anything, I think it is funny the Street won't put its money where its "WU-is-dead" mouth is. If WU is dead, short it, guys. Come on. Double dog dare you.

      • 1 Reply to redheadinvestor
      • redheadinvestor Mar 28, 2013 12:39 PM Flag

        I'd even go a step farther. The short position in WU has never been large in DTC terms, not even before the crash. WU is a stock shorty ignores, and with good reason: the steady earnings, FCF profile, buyback tendencies, and low multiple of WU are all potentially ballbusting for a short. WU is a very high-risk short even if, like all stocks, it falls from time to time. Shorty doesn't need Icahn for an enemy here - WU can beat shorty on its own, with ops-generated cash.

        An ideal short is a shrinking, cash-poor, high-multiple company that disdains its shareholders. There are a lot of these companies out there - they are the rule, and WU is the exception. SKUL is a great example of that kind of company, and its stock deservedly got shorted into the ground.

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