OTC Short Interest Jumps
Non-U.S. OTC Stocks See Dramatic Short Interest Increase in May, Despite Small Share Counts
Anonymous
Key Points
1
TGS ASA’s short interest rose from 3,960 shares (May 14) to 185,887 shares (May 29)—an exact +4,594.1%. On the referenced Wednesday, the OTC stock traded up to $15.68 (up $0.20) on volume of 22,228 shares versus an average 68,704 shares.
2
Logan Energy’s OTC shares were extremely thinly traded when the May 29 short-interest figure was reported: the stock fell $0.02 to $0.65, with only 250 shares exchanged versus an average volume of 119,580.
3
Tenaga Nasional Berhad remained flat at $13.76 on the cited Wednesday, and the article adds key market metrics: market capitalization of about $19.91 billion, P/E of 31.27, and beta of -0.37.
4
Tsingtao Brewery’s May short-interest jump translated into higher implied liquidity risk: the shares were “flat at $6.09,” with the article also noting 50-day and 200-day moving averages of $6.37 and $6.42, respectively (plus a 52-week range of $5.83–$7.14).
5
The Tsingtao article provides specific product detail not covered in the summary: the flagship Tsingtao Lager is brewed using spring water from the Laoshan Mountains and malted barley, described as producing a “crisp and refreshing flavor profile.”
Short interest in several international stocks traded on U.S. over-the-counter markets surged by more than 4,000% in May 2024 — but the eye-catching numbers tell only part of the story. Watchlist News reported that TGS ASA, a Norwegian geoscience firm, saw its short interest jump 4,594.1% in just 15 days, from 3,960 shares on May 14 to 185,887 shares by May 29.
Across the board, the massive percentage swings were driven by a "small-base effect." When only a handful of shares are shorted to begin with, even a modest increase looks enormous in percentage terms. Analysts call these moves "artifacts of illiquidity" in thinly traded OTC markets.
TGS ASA Leads the Surge With Merger Arithmetic
TGS ASA's short interest spike is the largest of the group. The stock trades under the ticker TGSGY on OTC markets. On May 29, it changed hands at $15.68 — up $0.20 on the day — but volume was just 22,228 shares, far below its average of 68,704 shares, according to Watchlist News.
The spike likely has a structural explanation. In late 2023 and early 2024, TGS was completing a merger with rival seismic firm PGS. Merger arbitrageurs often short the acquiring company while holding the target. That strategy can inflate short interest in a lightly traded OTC ticker dramatically, even when the absolute number of shorted shares stays small.
Logan Energy and Tsingtao Face Real Liquidity Risk
Two other companies face a more practical concern: getting out. Logan Energy, a Canadian junior oil producer, had 374,762 shares shorted as of May 29 — giving it a days-to-cover ratio of 4.3. That means short sellers would need more than four days of average trading volume to close their positions. On May 29 itself, only 250 shares traded, versus an average daily volume of 119,580, according to Watchlist News. The stock fell $0.02 to $0.65.
Tsingtao Brewery, China's second-largest beer maker, saw its short interest climb to 30,135 shares — a 4.7-day days-to-cover ratio. The stock was flat at $6.09, sitting below both its 50-day moving average of $6.37 and its 200-day moving average of $6.42, per Watchlist News. Its shares have traded between $5.83 and $7.14 over the past 52 weeks. The flagship Tsingtao Lager is brewed with spring water from China's Laoshan Mountains using malted barley.
Hapag-Lloyd and Tenaga Show Near-Zero Bearish Bets
For Hapag-Lloyd, the German container shipping giant, the numbers are almost comical in scale. Its short interest rose to just 1,003 shares — a fraction of a fraction of its total float. Zacks Investment Research reiterated a "Hold" rating on the stock on May 13, citing stable fundamentals despite disruptions in Red Sea shipping lanes, according to Watchlist News.
Malaysia's state electricity utility Tenaga Nasional Berhad had only 396 shares shorted, with a days-to-cover ratio of 0.9. The stock held flat at $13.76 on the day in question. The company carries a market cap of roughly $19.91 billion, a P/E ratio of 31.27, and a beta of -0.37 — meaning it tends to move opposite the broader market, per Watchlist News.
Why Percentage Headlines Can Mislead OTC Investors
The core lesson from all five stocks is simple: percentage change alone is a poor guide to real bearish pressure. A jump from 178 to 7,550 shorted shares — like PT Gudang Garam Tbk's 4,141.6% increase reported by Watchlist News — sounds alarming. But 7,550 shares is a position so small it would barely move a stock in a normal market.
Analysts recommend focusing on two better metrics: absolute share count and days-to-cover. A high days-to-cover ratio — above four days, as seen in Logan Energy and Tsingtao — signals real liquidity risk. It means short sellers are stuck. If positive news breaks, they would have to buy back shares fast, potentially spiking the price. For the other three stocks in this group, the numbers are too small to carry that kind of weight.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
37
Articles
23
Reach
60
A
AnonymousAuthor
