Joel Kornblau - Tuesday, March 12, 10:42 AMAn examination of the most recent short interest data revealed these five Daniel Loeb stocks with particularly high short interest, as measured by "days to cover." This metric is just one way to look at short data, but this is a metric we here at Holdings Channel find particularly useful because it considers both the total shares short and the average daily volume of shares traded. The number of shares short is then compared to the average daily volume, in order to calculate the total number of trading days (at the average volume) it would take to close out all of the open short positions if every share traded represented a short position being closed. So for example we found that Sotheby's (BID) now has 12.56 days to cover.
Looking through the stocks held by Daniel Loeb for the most recent reporting period, we found the following five stand-outs with the highest levels of short interest as measured by the number of days to cover. The first column is the Daniel Loeb holding, the second column is the number of days to cover, the third column is the number of shares held at Third Point at last report, and the final column is the total number of shares short (in this way we can compare "Daniel Loeb vs. The Shorts" as far as the relative positions).
|Daniel Loeb Holding||Days To Cover||Third Point Shares||Short Interest|
As you can see, Sotheby's (BID) is an interesting situation, as are Kadmon Holdings Inc (KDMN), Merck & Co Inc (MRK), Campbell Soup Co (CPB), and S&P Global Inc (SPGI) — why are short sellers attracted to these names, while Daniel Loeb has the opposite view (i.e. Third Point is long those stocks)? It could simply be a matter of differing viewpoint on valuation of each given stock, or there could be fundamental disagreements over what is happening at the business level and whether recent developments are positive or negative for that company's future success. Following quarterly 13F filings to keep track of Daniel Loeb stock picks is warranted for investors interested in keeping track of what Daniel Loeb does with these positions (adds, reduces, or exits).