CPR’s stock decline and extreme short position growth signal squeeze risk potential. With a high crowded score, CPR joins other heavily shorted stocks in a possible squeeze scenario. Using the Black APP {APPS BLACK<GO>} on the Bloomberg Terminal to see the analysis.

In the past 2 years Davide Campari-Milano (CPR) has gone from a normal stock with a very small regular short position to one of the most shorted stocks in its sector.

The stock has lost half its value, and the short position now stands at 24% of float.

The pattern is that there is negative relationship between the stock price and the short position, in that investor short more on the way down in a momentum strategy.

This continue when the stock recently lost 20% and the short position spiked.

The crowded score which measures the baseline short position is extremely high.

The squeeze risk score oscillates around the crowded score and is also frequently above 70, were the stock to rally.

There are other stocks with large short positions that have different patterns.

Carrefour SA (CA FP) the short position is shrinking has risen as the stock has gone sideways.

In DocMorris AG (DOCM SW) the short position also rose as the stock fell.

In Grieg Seafood ASA (GSF NO), the short position has been growing the short position has risen, recently the stock and short position has risen together in a reversal strategy.

CA FP would be in squeeze territory if the stock were to rally.

DOCM SW and GSF NO both have a squeeze score of 82.50 so they should be watched.

CPR’s extreme short position, negative correlation with price, and high squeeze risk indicate potential for volatility if upward momentum builds.

Want to know more?

Access this data in real time using S3’s BLACK APP or Contact us to get started.