Gotta love of short squeeze around Christmas time. When you’re long a stock that’s getting squeezed it’s like an early stocking stuffer present hanging over the fireplace.
Everyone and their mother was trying short Jefferies into their latest earning call only to get squeezed after they said things aren’t as bad as everyone thought. Jefferies of course was being lumped together with MF Global, who brutally went bankrupt after being over leveraged on European debt – burnt more by margin calls then their bets being wrong. Jefferies too had made a lot of bets on European debt, but said they reduced their balance sheet by nearly one-fourth and cut its leverage to 9.9:1 from 12.9:1. The stock (JEF) is up 22% today on the news. The shorts are feeling the pain.
Maybe the street will now give Jefferies CEO Dick Handler a break and the shorts will lay off the stock. Yes, that’s his real name.