U.S. Markets closed
  • S&P 500

    +44.31 (+1.01%)
  • Dow 30

    +238.20 (+0.68%)
  • Nasdaq

    +152.39 (+1.04%)
  • Russell 2000

    +10.17 (+0.46%)
  • Crude Oil

    +0.19 (+0.26%)
  • Gold

    -3.50 (-0.19%)
  • Silver

    -0.13 (-0.50%)

    +0.0003 (+0.0235%)
  • 10-Yr Bond

    +0.0210 (+1.66%)
  • Vix

    -0.49 (-2.77%)

    -0.0019 (-0.1375%)

    +0.4300 (+0.3905%)

    +133.73 (+0.41%)
  • CMC Crypto 200

    -9.15 (-1.15%)
  • FTSE 100

    +59.28 (+0.85%)
  • Nikkei 225

    +159.80 (+0.58%)
  • Oops!
    Something went wrong.
    Please try again later.

Retail investors' darling stock NanoRepro lures short sellers after 4,000% gain

·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Danilo Masoni

March 9 (Reuters) - Fertility testing company turned COVID-19 specialist NanoRepro , which has been a recent darling of German retail investors, has seen a sudden emergence in short selling activity after a dramatic share price surge.

Shares in the Marburg-based company have climbed around 4,000% at its peak this month from early March last year when it first added a coronavirus test to its portfolio, sparking a boom in its business.

But signs of stock borrowing activity in the German micro-capitalized company emerged for the first time in more than 15 months last week, data from FIS Astec Analytics showed, indicating that some investors were taking a stab at shorting the stock.

Before end-February, there was no trace of borrowing activity, partly due to a low free float, as traders piled into the shares after demand for COVID-19 testing led to a ten-fold rise in its 2020 sales and an explosion of its order book.

According to the latest data from FIS Astec the cost to borrow shares in the little-known firm stood at a high of 17% on Wednesday, ten times the sector average, as loan volumes rose.

On the same day, NanoRepro hit a peak at over 22 euros, giving the company a market capitalisation of over 240 million euros ($285million) compared to just 5 million a year earlier.

Since then, the stock has lost ground and by 1428 GMT on Tuesday, it was set for its worst day in five months, down 18%.

"It falls incredibly quickly. And that doesn't look like a 'dip'. Someone selling seldom comes alone. I'm glad I'm out," said Reddit-user Porsche981Fan on the German-language MauerStrassenWetten forum where NanoRepro became a star.

Despite the fresh fall, NanoRepro is still up nearly 2,500% over the last year, a move that dwarfs rallies seen in highly hyped assets like Bitcoin or Tesla.

Meanwhile, the German government's plan to pay for all asymptomatic citizens to have a quick COVID-19 test at least once a week looks a further boon to the business NanoRepro newly ventured into.

($1 = 0.8413 euros)

(Reporting by Danilo Masoni; Editing by Bernadette Baum)