9 months ago

Tsuruha Holdings Faces Potential Short Squeeze

Tsuruha Holdings Faces Potential Short Squeeze
Tender Offer Threatens Squeeze on Topix 500’s Most-Shorted Stock · livemint.com

Tsuruha Holdings is a company that has seen a lot of people betting against its stock, called short selling.

This happens when investors borrow shares to sell, hoping to buy them back later at a lower price.

Right now, Tsuruha's stock has gone up a lot, and some people think it might go up even more when the company reports its earnings.

If that happens, those who bet against the stock might have to buy it back quickly at a higher price, causing a 'short squeeze.'

This could make the stock price jump even higher.

Some experts think this might happen, while others believe the stock might not go up as much because of other factors like tensions between China and Japan affecting tourism and retail sales.

Key facts

Company
Tsuruha Holdings Inc.
Short Interest
24.9% of free float
Current Share Price
¥2,800
Tender Offer Price
¥2,900
Expected Earnings Report Date
Two days after tender offer closes
Aeon's Expected Stake Post-Tender
50.9%
One-Year Average Share Price
¥2,236.2

Quotes

Nobuhiko Kuramochi

Vice president at Parasol Research Institute

“If earnings turn positive and the stock rises, particularly at a time of reduced liquidity, investors who had been betting on a drop may be forced into costly purchases.”
livemint.com

Takehiko Masuzawa

Head of equity trading at Phillip Securities Japan

“If the company posts really strong results, investors will rush to buy back the shares, and the stock can surge very quickly. If only around 50% of the shares remain in free float, the market impact is naturally going to be significant.”
livemint.com

Rieko Otsuka

Strategist at MCP Asset Management Japan

“The market may already be pricing in the view that there is little chance of any significantly positive surprise.”
livemint.com

Sources

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