Short Selling of Magnum Hunter’s Stock Continues Big Decrease
Two weeks ago MDN told you about a positive trend for Magnum Hunter Resources’ (MHR) stock–traders were doing less “short selling” of the stock (see Positive Sign: Short Selling of Magnum Hunter’s Stock Decreases). At the time we noted 26.4% of MHR’s stock was being sold short (national average for all stocks is around 5-6% and the average for oil and gas companies lately has been around 12%). We have an update: short selling of MHR’s stock as of Sept. 30 was down again, dramatically, and stood at 19%. Which means traders believe prospects for the company’s financial health are improving. That doesn’t mean the company doesn’t face challenges. As we told you last Monday, MHR appears to be getting ready to either sell itself or file for bankruptcy (see Magnum Hunter: Preparing to Sell, or Filing for Bankruptcy?). Still, short selling is an important signal of what the financial markets think about a particular company–and having your stock go from 26% to 19% in short sales is a big deal–in the right direction…
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