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Short Interest in the Top 5 Oilfield Companies by Free Cash Flow

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Short interest in SLB

Short interest in HAL and NOV

Short interest in Halliburton (HAL) as a percentage of its float was 2.5% as of December 19, 2017. Since December 30, 2016, short interest in HAL has increased 11%, while HAL’s stock price decreased 13.6% up to December 19. By comparison, short interest in National Oilwell Varco (NOV) as a percentage of its float was 8.3% as of December 19, 2017. Short interest in NOV has increased ~37% since December 30, 2016, while its stock price decreased ~10%.

Short interest in RES and FMSA

Short interest in RPC (RES) as a percentage of its float was 41.4% as of December 19, 2017. Short interest in RPC has decreased 21% since December 30, 2016, while its stock price increased 25.7% during this period.

Short interest in Fairmount Santrol Holdings (FMSA) as a percentage of its float was 11% as of December 19, 2017. Short interest in Fairmount Santrol Holdings has more than doubled since December 30, 2016, while its stock price decreased 45% during this period. So investors’ negative bets on FMSA increased significantly since December 30, 2016.

Typically, more investors expect the stock’s price to fall if short interest as a percentage of float increases. FMSA is 5.0% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has decreased 31% since December 30, 2016. The S&P 500 Index (SPX-INDEX) increased 20% since December 30, 2016.

In the next part of this series, we’ll look at Wall Street’s recommendations for these top OFS stocks by free cash flow.

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