UXC seems to be enjoying good demand for its services (see contract wins posted by others on HC). Last week, it announced an acquisition which is "immediately earnings accretive". This week managing director Cris Nicolli bought shares on-market (usually a positive sign, even if symbolic). The HY15 report in February was well received, but equally important offered upbeat guidance for a "strong second half" due to several factors ( 50% signed contracts, effects of recent acquisitions, efficiency improvements, etc).
So, why are UXC's shares acting suppressed? The answer is apparent in the table below:
One insto (could be more, but has characteristics of one firm) began targeting this stock with short sales within the past two weeks. Short contracts jumped from 0.1% to 0.25% in one week. The super sized shorting this week has all the hallmarks of a classic insto practice -- influencing the sp through high volume selling on a mid-sized or small-cap stock.
Confession season isn't over yet, so possibly the short seller has knowledge of issues with UXC that will soon be announced. More likely, the firm is pushing the sp down to give the perception of a problem where none exists.
What's most interesting is that UXC's sp has been reasonably resilient considering the huge dump of stock (nearly $500k of short sales yesterday alone!). A lot of bot trading, so likely one or more insto buyer picking up the sales at this low price point.
Please DYOR. these are just my observations and interpretations.
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