One of the most shorted stocks that emerged last week was IQE. The semiconductor firm’s share price plunges today – down a quarter – on fears of the escalating Sino-US tariff war.
Technically, its share price has been under pressure long before today’s slump. It peaked in 2017 and has been on the slide since. At 52p, prices are two-third below its 2017 peak of 180p. The next support level is at 30p.
Kier Group is another stock featured in the top ten most-shorted list. Profit warnings, significant debt, and depleting resources are making investors nervous here. More damaging was the big downward dynamic Kier made late last year, a move that saw price collapse by 50% (see below). Prices have not recovered from that decline. With new price low after new price low, the bears will likely to stay short this counter.
While Newriver REIT is just outside the top ten most shorted, at 11th position, its share price is looking very vulnerable too. Prices have not only wiped off its rebound from 200p, at 186p this REIT broke the key round number support level. The next downside target is pencilled in at the 2012 lows near 170p.
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Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.