Compliments of Gator
InterOil short interest skyrockets.
At the end of the settlement date of March 15, 2013, short interest in InterOil stock (NYSE- IOC) skyrocketed again in the latest reporting period to a record high of 14,049,458 according to the NYSE . Over 1,075,000 shares were shorted during the first two weeks of March. This is the 11th consecutive reporting period with increased short interest in InterOil stock. Since the end of September, over 5 million additional shares of InterOil have been shorted.
With over 14 million shares short, InterOil now has over 28% of all the company’s shares are sold short and over 34% of the available float is short. InterOil is now one of the top 10 stocks on the NYSE as a percentage of float short. The 8% increase in short interest in the latest two week reporting period didn’t deter the IOC stock price as it was up 3.5% during the first two weeks of March. Even with the massive increased short interest this year, InterOil stock has continued to perform well as the stock up 33% YTD.
With over $1 Billion worth of InterOil shares short, the stock has becoming increasingly more difficult to borrow and those short have to pay significantly higher rates to borrow the shares. With the end of the first quarter looming, short funds may be forced to cover as investor redemptions increase due to underperformance.