What is the current short interest in Tsuruha Holdings?

As of Thursday, Tsuruha Holdings had a short interest of 24.9% of its free float, making it one of Japan's most heavily shorted stocks.

Why is Aeon increasing its stake in Tsuruha Holdings?

Aeon is conducting a tender offer to increase its stake in Tsuruha Holdings, aiming to raise its ownership to over 50%.

Could Tsuruha Holdings trigger a short squeeze?

Analysts warn that positive earnings from Tsuruha Holdings could lead to a short squeeze, forcing short sellers to buy back shares at higher prices.

Home / Business and Economy / Tsuruha Holdings: Short Sellers Beware!

Tsuruha Holdings: Short Sellers Beware!

19 Dec

•

Summary

Tsuruha Holdings is Japan's most shorted stock, with 24.9% short interest.
A tender offer by Aeon is driving a significant rally in Tsuruha shares.
Analysts warn of a potential short squeeze if earnings surprise positively.

Tsuruha Holdings Inc. has become a focal point for short sellers in Japan, with 24.9% of its free float subject to short interest as of Thursday. This strategy anticipates a decline following a substantial rally that has seen the drug store operator's shares climb approximately 60% this year, reaching ¥2,800. The current surge is largely attributed to a tender offer from Aeon Co., which plans to raise its stake in Tsuruha.

Aeon's ongoing tender offer at ¥2,900 per share, a premium to recent averages, is expected to boost its ownership to over 50%. This tender offer is set to conclude just before Tsuruha is scheduled to report its earnings. Analysts suggest that if Tsuruha's financial results exceed expectations, it could ignite a short squeeze, compelling investors who bet against the stock to buy shares rapidly, thus amplifying any upward price movement.