THE DATA IS THE NEWS

Energy

  • Hong Kong\China short sellers have been actively shorting into the declining Hong Kong and Chinese markets and generated $17.3 billion in mark-to-market profits, +18.0%, as the Hang Seng Index declined 16.7% and the CSI 300 Index declined by 25.8% in 2018. Short sellers continue to increase their positions as their profits build, adding $1.7 billion in new shorts throughout the year. Hong Kong\China with $80 billion in short interest is the second most shorted country behind the U.S. ($911 billion) and ahead of Japan ($73 billion) and the U.K. ($66 billion.)

    read more
    6 FacebookTwitterGoogle +Pinterest
  • Oil prices rallied at the start of 2018 with WTI crude topping $66/barrel in late January. Short interest in the U.S./Canadian Oil, Gas & Consumable Fuel Sector tracked higher along with the price of crude, hitting a year-to-date high of $55.2 billion in mid-January. By the time WTI crude hit its year-to-date low of $58.98 on February 14th, short interest in the sector had just hit its year-to-date low of $43.1 billion on February 12th. Since hitting its lows, the price of WTI crude has risen 15% to $67.83 and short interest in the sector has increased by 27% to $54.8 billion. Oil & gas equity short sellers have been shorting into crude price strength and covering on price weakness.

    read more
    1 FacebookTwitterGoogle +Pinterest
  • We tracked $951 billion of short interest in the U.S./Canadian region and the top ten most and least profitable short trades for the month of February were:

    Most Profitable Shorts

    (in $ millions)

    TickerSectorFeb. Avg.

    Short Int.

    Feb. MTM

    P/L

    Feb. MTM

    P/L %

    Wal-Mart StoresWMTHypermarkets$3,620+$665.4+18.38%
    Tesla IncTSLAAuto Manufacturer$9,984+$599.9+6.01%
    CVS CorpCVSDrug Retail$3,020+$545.3+18.05%
    Comcast CorpCMCSACable & Satellite$2,868+$488.7+17.04%
    Advanced Micro DevAMDSemiconductors$1,996+$460.6+23.07%
    Chevron CorpCVXIntegrated Oil & Gas$2,613+$451.4+17.28%
    Exxon Mobile CorpXOMIntegrated Oil & Gas$2,751+$433.3+15.75%
    Alphabet Inc AGOOGLInternet Software & Svcs$3,972+$409.2+10.30%
    MiMedx Group IncMDXGBiotechnology$512+$371.9+72.59%
    Akorn IncAKRXPharmaceuticals$741+$366.0+49.39%
    • WMT After a rally which lasted for all of 2107 and stretched into January 2018, Wal-Mart’s stock price has been declining since it reported quarterly earnings which missed on profits, beat on sales and disclosed 2018 guidance below expectations.
    • TSLA After hitting $357.42 in late February, Tesla’s stock price began to tumble as it nears its 200,000th vehicle delivery which will mark the eventual phase out of the U.S. Government’s $7,500 tax credit.
    • CVS CVS shares trended lower when the DOJ asked for more details on the CVS-Aetna merger. Even their strong quarterly results, which beat on earnings and sales, couldn’t reverse its 14% price drop in February.
    • CMCSA Comcast’s share price took a hit when they disclosed a potential rival bid for Fox’s media assets, Disney has a $52 billion offer on the table, which would have to be topped.
    • AMD After posting solid quarterly earnings, analysts fear that its crypto-mining based growth may be short lived and tenuous due to increased competition.
    • CVX Chevron quarterly results met revenue expectations, but missed badly on earnings after backing out the effect of $2 billion of tax benefits.
    • XOM Exxon Mobil reported lower than expected quarterly earnings due to a drop in demand for its refining business.
    • GOOGL Alphabet had strong quarterly revenues, but earnings underperformed FactSet estimates by $0.28/share even though overall revenues increased by 24%.
    • MDXG MiMedx is delaying the release of its 4th quarter and 2017 full year earnings until it concludes an internal accounting audit. Later In the month reports arose that the DOJ was investigating the company’s sales and distribution practice, specifically regarding government contracts.
    • AKRX Shares plunged after its acquirer, Freenius SE, announced that it was conducting an investigation into Akorn’s product development policies in relation to FDA date integrity procedures.
    Least Profitable Shorts

    (in $ millions)

    TickerSectorFeb. Avg.

    Short Int.

    Feb. MTM

    P/L

    Feb. MTM

    P/L %

    Snap Inc ASNAPApplication Software$1,763-$557.3-31.62%
    GrubHub IncGRUBInternet Software & Svcs$1,327-$410.4-30.93%
    Netflix IncNFLXInternet Retail$5,859-$386.6-6.60%
    Twitter IncTWTRInternet Software & Svcs$1,212-$256.2-21.14%
    Apple IncAAPLTechnology & Hardware$7,568-$229.5-3.03%
    Ebay IncEBAYInternet Software & Svcs$1,333-$224.0-16.80%
    Lumentum HoldingsLITECommunication Equip.$726-$187.0-25.77%
    Amazon.Com IncAMZNInternet Retail$7,518-$185.6-2.47%
    Micron TechnologyMUSemiconductors$2,618-$180.5-6.90%
    Qorvo IncQRVOSemiconductors$744-$177.4-23.84%
    • SNAP Snapchat stock soared over 20% as its quarterly results handily beat expectations on both revenues and Daily Active User growth.
    • GRUB Yum! Brand (YUM) announced a delivery partnership with GrubHub, extending GRUB’s reach across the country. YUM purchased $200 million of GRUB stock to formalize the agreement.
    • NFLX Netflix signed Ryan Murphy, creator of American Horror Story, to a five year deal. NFLX is slowly inching towards the $300/share level which is increasing buying demand from momentum traders.
    • TWTR Twitter reported its first profitable quarter, beating on both revenues and earnings but disappointing slightly on Monthly Active User growth.
    • AAPL Warren Buffett’s Berkshire Hathaway (BRK) increased its Apple stake in the 4th quarter 2017 to 169.6 million shares or $29.7 billion.
    • EBAY Reported strong quarterly results and decided to end its payment processing relationship with PayPal and replacing it with Dutch firm Adyen. EBAY is looking to not only to reduce its payment processing costs but also control more of its operational footprint.
    • LITE Reported strong quarterly earnings including an increase in overall sales, specifically in its 3D-sensing product line.
    • AMZN Amazon began cost cutting measures with over 100 layoffs in its corporate workforce. Amazon is also looking to expand its retail footprint in the medical supply sector, an extension of its possible foray into the retail drug sector. The firm is also starting its own shipping service to compete with UPS for not only its own deliveries but also for their retail partners.
    • MU Micron Technology reported strong earnings, reporting EPS and sales higher than previous guidance culminating with year-to-date earnings that could hit $10/share.
    • QRVO Qorvo reporting better than expected quarterly earnings with slightly weaker short term guidance but stronger long term guidance.

    Want deeper insight into the above analysis?

    Contact: [email protected]

    read more
    1 FacebookTwitterGoogle +Pinterest
  • The Energy sector is broken up into seven sub-industries and total short interest in the sector is $78.0 billion and short interest was down $4.8 billion in the last month.

    Energy Sub-Industries

    In $ millions

    Total

    Short Interest

    1 Month Change

    In Short Interest

    1 Week Change

    In Short Interest

    Coal & Consumable Fuels$1,644+$182+$66
    Integrated Oil & Gas$15,677-$3,833-$23
    Oil & Gas Drilling$4,380+$28-$211
    Oil & Gas Equipment & Services$12,219-$15-$303
    Oil & Gas Exploration & Production$23,309-$150-$1,126
    Oil & Gas Refining & Marketing$6,841+$436+$526
    Oil & Gas Storage & Transportation$13,935-$1,394-$3,434
    Total Energy Sector$78,005-$4,757-$4,505
    Security

    (in $ million’s)

    TickerCountryTotal Short

    Interest

    1 Month Change

    In Short Interest

    Exxon Mobil Corp.XOM USUSA$3,025-$97
    Chevron Corp.CVX USUSA$2,330-$182
    Total SAFR FPFrance$2,019-$3,010
    Schlumberger Ltd.SLB USUSA$1,642+$174
    Valero Energy Corp.VLO USUSA$1,347+$140
    ConocoPhillipsCOP USUSA$1,274+$229
    Apache Corp.APA USUSA$1,235-$103
    Helmerich & PayneHP USUSA$1,200+$98
    Hess Corp.HES USUSA$1,140-$
    Enbridge Inc.ENB CNCanada$1,116-$311

    Short sellers were generally successful in the Energy Sector, with only one stock with year-to-date losses over $100 thousand.

    read more
    0 FacebookTwitterGoogle +Pinterest
  • EnergyExxon MobilSectors

    S3 Analytics: Good Shorts

    by S3 Partners
    Large & Mega

    Cap Stocks

    TickerAvg S.I.

    ($ in mm’s)

    2017 YTD

    $ P/L

    2017 YTD

    P/L %

    Comcast CorpCMCSA US$2,471.2$1,047.8+42.40%
    Target CorpTGT US$2,143.6$571.6+26.67%
    AT&T IncT US$4,719.3$517.6+10.97%
    Hess CorpHES US$1,462.7$382.0+26.12%
    Exxon MobilXOM US$2,606.0$298.6+11.46%
    Apache CorpAPA US$1,201.0$295.9+24.64%
    WW GraingerGWW US$1,536.3$276.9+18.03%
    Chevron CorpCVX US$2,619.4$247.9+9.46%
    Express ScriptsESRX US$1,824.4$219.8+12.05%
    General ElectricGE US$2,653.2$198.1+7.47%
    Mid

    Cap Stocks

    TickerAvg S.I.

    ($ in mm’s)

    2017 YTD

    $ P/L

    2017 YTD

    P/L %

    Frontier CommFTR US$665.2$481.9+72.45%
    Copart IncCPRT US$366.1$329.3+89.95%
    Under ArmourUAA US$1,024.2$325.2+31.76%
    Tempur SealyTPX US$668.7$320.4+47.91%
    Helmerich & PayneHP US$1,206.1$307.3+25.48%
    Signet JewelersSIG US$679.2$286.0+42.10%
    Kohls CorpKSS US$971.3$228.0+23.47%
    US Steel CorpX US$704.4$222.0+31.52%
    JC PennyJCP US$560.7$221.7+39.53%
    AK Steel HldgAKS US$374.7$199.1+53.15%
    Small, Micro, Nano

    Cap Stocks

    TickerAvg S.I.

    ($ in mm’s)

    2017 YTD

    $ P/L

    2017 YTD

    P/L %

    Whiting PetroWLL US$416.2$165.2+39.68%
    Oasis PetroOAS US$515.6$119.7+23.11%
    Rowan CosRDC US$388.1$116.7+29.93%
    Denbury ResDNR US$196.0$114.3+58.17%
    Atwood OceanicsATW US$242.7$110.3+45.22%
    Tailored BrandsTLRD US$218.4$109.4+49.90%
    Amag PharmaAMAG US$163.7$105.7+64.41%
    Synergy PharmaSGYP US$238.4$105.7+44.07%
    Calif ResourcesCRC US$196.1$99.6+50.06%
    Synchronoss TechSNCR US$124.7$97.9+78.32%

    Want deeper insight into the above analysis?

    Contact:  [email protected]

    Head of Research, S3 Partners

    For more information on S3’s reporting, data and analytics solutions, email us at [email protected]

    read more
    0 FacebookTwitterGoogle +Pinterest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy Policy