Short-Selling Mitsubishi

Mitsubishi_Motors

Mitsubishi Motors Corp (7211.T)’s strong half-year operating profit has boosted the automaker’s stocks by 13 percent over the past four sessions peaking investors’ interest in short selling the stock.

Mitsubishi’s motors recorded profit ended in September 41 percent higher than previously to 50.8 billion yen ($518 million) after market closed last Thursday, confirming the results on Tuesday after market close.

On Wednesday morning the stock hit a two-month high at 1,161 yen after it rose 2 percent. Since Thursday’s announcement the stock gained 13.4 percent, despite reports that the firm plans to raise around $2 billion in public share offering to repay top shareholders for the 2004 bailout that helped the company perform a decade-long turnaround.

According to data provider Markit, 8.78 percent of Mitsubishi Motors’ outstanding shares were out on loan as of October 28, compared to 8.22 percent at the end of September.

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