Camping World Holdings (CWH) technical short squeeze may be coming.
Camping World Holdings (CWH US) short interest is $131 million; 10.13 million shares shorted; 31.65% of float; Â 11.65% stock borrow fee on existing shorts and 40% to 60% fee on new shorts and rising.
Weâ€™re seeing over half a million shares of CWH recalled this morning and stock borrow rates more than quadrupling on new shorts this morning. Sales shorted had plateaued last week, up only 50k shares, after increasing by 502k the previous week. With shorting demand waning, any headwinds on the short-side may negatively affect short activity.
CWH short sellers up almost $11 million in mark-to-market profits in March & February, which offsets a good portion of Januaryâ€™s $27 million in losses, there is a strong possibility that the higher cost of short sale financing and recalls may force a large block of short sellers to close down their positions.
If stock loan rates continue to climb, we can expect short-side buy to covers bolstering CWHâ€™s stock price.
Want deeper insight into the above analysis?
Contact:Â [email protected]
Managing Director Predictive Analytics, S3 Partners, LLC
For more information on S3â€™s reporting, data and analytics solutions, email us at [email protected]. Start your free trial of the BLACK App â€“ the only source of real-time short interest on the Bloomberg Terminal or Thomson Reuters Eikon.
For short side data and access to our research reports go to https://shortsight.com/ .
The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (â€śS3 Partnersâ€ť) to be reliable and accurate.Â Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use.Â Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks and merits, as well as the legal, tax, accounting and investment consequences, of such decisions.