Hedge funds 250M shorts in telecom sector ??? a defensive sector??? with QE ending soon??? will cover...
When I looked at the short interest data for the end of August, I noted that short sellers were going after Sprint ( S ) and AT&T ( T ) on concerns that competition from new areas may threaten the wireless industry's cartel pricing.
Fresh short interest data for mid-September has just been released, and the shorts are really digging in, going after Verizon ( VZ ) as well. And these three firms are now among the 20 most heavily shorted stocks on the New York Stock Exchange. That's quite a concentration of interest in what has historically been a very stable industry.
Rising Short Interest (millions of shares)
AT&T: from 89M in july to 121M now ???
Sprint from 39M in july to 65M now ???
Verizon from 46M in july to 58M now???
It pays to track events in this industry, as nearly 250 million shares are being held by short sellers, which indicates broad interest among major short-selling hedge funds.
I guess they have made tons of $$$$ on the way down....but end of QE....will make them cover because market will turn to defensive stocks...like telecoms...
For now the best play is accumulating slowly....and get the dividend.....lol