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						<span class="tag is-dark is-uppercase">Investing</span>
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<p>February 20, 2023 9:42 am</p>
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<p>Author(s): Ben Ward</p>
<p>Shares of Chinese based video sharing company Bilibili (US:BILI) have staged a 130% share price recovery following trends in Hong Kong since equity markets after hitting an annual low point below $8 in late October.</p>
<p>The stock continues to trade more than 85% below its peak hit in early February 2021 during the pandemic which saw a significant uptick in website usage.</p>
<p>The company was founded by Xu Yi in 2009 and first listed on the Nasdaq in 2018 and created a second listing on the Hong Kong exchange in March 2021.</p>
<p>Bilibili has scaled up quarterly revenues significantly over the last few years to ¥5.79 billion yuan reported in Q3 and is on track to post sales of around ¥21.91 billion for the full financial year.</p>
<p>Over the same time, losses have followed suit with the company on track to report its largest net loss recorded in the history of around -¥7.5 billion (polled by analysts), widening from -¥6.8 billion in the financial year 2021.</p>
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<p>In the current market, as a result of the FED’s rate hiking cycle, loss making companies on high sales/EV multiples continue to be sold off as the cost of financing rises substantially. The market has rewarded profitable companies with sustainable recurring positive cash flows.</p>
<p><strong>Some </strong><strong>hedge funds and institutions</strong><strong> have a negative view on the stock and are currently short the company.</strong></p>
<p>Wolverine Asset Management LLC has the largest net short position with -$78.43 million in put options betting against the stock’s continued recovery.</p>
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<p>Weiss Asset Management LP has -$47.35 million of BILI shorted through the use of put options.</p>
<p>LMR Partners LLP has the third largest net short position worth -$33.22 million. The fund has a $7.05 million long position in the stock and -$40.27 million shorted with put options.</p>
<p>Parallax Volatility Advisers L.P. has the fourth largest net short position of -$11.20 million. The fund has a $2.37 million long position, $40.75 million in call option value and -$54.32 million of put options.</p>
<p>Jefferies Financial Group Inc has the fifth largest net short position of -$9.48 million in put option exposure.</p>
<p>Walleye Trading LLC has a -$7.51 million net short position in the stock consisting of $3.57 million in call option exposure and -$11.08 million in put option exposure.</p>
<p>The Calamos Market Neutral Income Fund has a pure short position worth -$3.13 million in the stock.</p>
<p>National Bank Of Canada has used -$4.57 million in put options to hedge its position in the stock and protect recent gains made over the last few months.</p>
<p>Fintel’s fund sentiment score of 27.00 is currently bearish on the company from the perspective of institutional interest in the stock. The score ranks BILI in the bottom 20% out of 36,375 globally screened securities.</p>
<p>The company currently has 352 institutions on the register that collectively own 112.49 million shares. The largest shareholders include: Yiheng Capital Management, Alibaba Group Holding Ltd, Marshall Wace, Fidelity Series Emerging Markets Opportunities Fund, Allspring Global Investments Holdings, and Artisan Partners Limited Partnership.</p>
<p>The chart to the right shows the declining fund ownership in the stock since its peak in the pandemic.</p>
<p>For an alternative perspective, analysts still think the stock could rise a further 23.90% from current levels this year. Fintel’s consensus target price of 27.32 consists of 11 strong buy recommendations, 20 buy calls and 10 hold ratings on the stock.</p>
<p><i>This article originally appeared on Fintel</i></p>
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Bilibili Has Seen A Strong Share Price Recovery, But Will The Momentum Last Over 2023? These Firms Are Short the Stock. – Darlinez News.
