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Short sellers 'clamouring' to borrow Roku shares - S3 Partners

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Short sellers 'clamouring' to borrow Roku shares - S3 Partners

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By Noel Randewich SAN FRANCISCO (Reuters) – Traders on Tuesday were “clamouring” to borrow shares of Roku in order to sell them short following the video-streaming company’s initial public offer last week, according to S3 Partners. Shares of the Los Gatos, California company dropped 8.3 percent to $21.60 on Tuesday, bringing their decline to 18 percent in the past two sessions. “With short sellers clamouring for short locates, stock borrow rates have increased from the 20-percent fee level to over 65-percent fee for some trades we’ve seen done today,” Ihor Dusaniwsky, S3 Partners’ head of research, said in an email. So far, about 2 million shares of Roku have been sold short, according to the financial analytics firm. Riding a wave of consumers abandoning cable TV and switching to online content while facing competition from larger rivals, Roku remained up 54 percent from the $14 price set in its initial public offer on Wednesday.

(Reporting by Noel Randewich; Editing by James Dalgleish)
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