Citigroup Investment Research
Comments on Biotech Monthly Short Interest - August
August 25, 2006 SUMMARY
* Short interest data for the month of August (July 15th - August 15th) has been collected.
* Companies posting short interest increases m-o-m: AMGN (+0.8%), DNA (+0.7%), MATK (+5.1%), NBIX (+2.7%), and SNMX (+16.7%).
* Companies posting short interest decreases m-o-m: BIIB (-0.3%), MEDI (-7.9%), NPSP (-2.4%), OSIP (-8.8%), and PDLI (-5.6%).
* Highest DTC ratio: MATK with 29.0 days vs. group average of 8.8 days. The lowest DTC ratio was held by BIIB with 2.3 days.
* Short interest for the month of August decreased 1.3% as compared with the previous month.
OPINION
This note evaluates a monthly time period (beginning in the middle of the
month) in assessing short interest activity for our coverage universe. Short
interest may be defined as the total number of shares of company stock that
have been sold short and remain uncovered to date. Gauging short interest can
be a valuable tool in examining investor sentiment towards the
drug/biotechnology industry.
Data from July to August slightly decreased. Short interest for the month of
August decreased 1.3% as compared with the previous month. Significant
movement was seen in several names.
Senomyx (SNMX, +16.7%) had significantly higher short interest on a m-o-m
basis. There were no companies with significantly lower short interest.
The highest days to cover ratio was Martek Biosciences (MATK) with 29.0 days.
The lowest days to cover ratio was held by Biogen Idec (BIIB) with 2.3 days.
The average for the entire group was 8.8 days to cover. Days to cover may be
defined as the number of shares sold short divided by the 90-day average
trading volume.
Martek Biosciences (MATK) and OSI Pharmaceuticals (OSIP) held the highest short
interest (as a percentage of float) at 32.4% and 17.3%, respectively, for the
month of August.
AUGUST MONTHLY SHORT INTEREST
Source: Citigroup Investment Research, FactSet, and Bloomberg
MONTHLY CHANGE IN DAYS TO COVER RATIO
Source: Citigroup Investment Research and FactSet
COMPANY STOCK PRICES AS OF AUGUST 24TH, 2006 CLOSE
AMGN (1M): $67.11
BIIB (2H): $43.76
DNA (1H): $80.18
MATK (1S): $28.56
MEDI (3H): $28.09
NBIX (3S): $10.98
NPSP (2S): $4.49
OSIP (2S): $35.93
PDLI (1S): $18.56
SNMX (1S): $14.03
All companies are covered by Elise Wang.
ANALYST CERTIFICATION APPENDIX A-1
I, Elise Wang, research analyst and the author of this report, hereby certify
that all of the views expressed |
