Favorite retail investor stock NanoRepro lures short sellers after 4,000% gain
(Reuters) – Fertility testing company has become COVID-19 specialist NanoRepro NN6G.DE, which has been a recent darling of German retail investors, saw a sudden emergence in short selling activity after a dramatic surge in stock prices.
Shares of the Marburg-based company climbed around 4,000% at its peak this month from early March last year, when it first added a coronavirus test to its portfolio. , triggering a boom in its activity.
But signs of equity borrowing activity in the German micro-cap firm emerged for the first time in more than 15 months last week, according to data from FIS Astec Analytics, indicating that some investors were trying to run short. -circuiter the action.
Before the end of February, there was no sign of borrowing activity, in part due to low float as traders piled up in stocks after demand for COVID-19 testing led to a surge by ten of its sales in 2020 and an explosion in its order book.
According to the latest data from FIS Astec, the cost of borrowing shares in the little-known company rose to 17% on Wednesday, ten times the industry average, as lending volumes increased.
On the same day, NanoRepro peaked at over 22 euros, giving the company a market capitalization of over 240 million euros ($ 285 million) from just 5 million a year earlier.
The title has since lost ground and at 2:28 p.m. GMT on Tuesday it was set for its worst day in five months, down 18%.
“It falls incredibly fast. And that doesn’t sound like a “dive”. Someone who sells rarely comes alone. Glad to be away, ”Reddit user Porsche981Fan said on the German-language MauerStrassenWetten forum where NanoRepro became a star.
Despite the new fall, NanoRepro is still up nearly 2,500% from last year, a move that overshadows the rallies seen in hotly-trending assets like Bitcoin or Tesla.
Meanwhile, the German government’s plan to pay for all asymptomatic citizens to undergo a rapid test for COVID-19 at least once a week seems another boon for the company NanoRepro has recently ventured into.
For a grpahic on NanoRepro, click onhere
(1 USD = 0.8413 euros)
Reporting by Danilo Masoni; Editing by Bernadette Baum