Macquarie Warrants Singapore wrote a post · Nov 6 01:52

Colour: Xiaomi is seeing bearish bets - Bloomberg

📰In a Bloomberg News article published this afternoon, hedge funds are ramping up bearish bets on $XIAOMI-W(01810)$ shares, with short interest rising 53% over the past week

📉The stock has fallen 27% over the past month from HKD 59.45 to HKD 43.38 as of 255PM today on safety concerns, factory delays, and a lack of uptake in its electric vehicles despite recent promotions

📛The lack of short-term share price catalysts have led some brokers to lower their target price on the company by more than 10%

Xiaomi is set to report its third quarter earnings on 18 November, and might see share price volatility ahead and on the back of that

✳Macquarie's trending Xiaomi call warrant $XIAOMI MBeCW260402(UURW.SI)$ (https://warrants.com.sg/tools/HistoricalPerformance/UURW) is down 48.7% to SGD 0.020 since its listing date on 21 October versus Xiaomi's 6.7% share price decrease over the same period. There are no Xiaomi put warrants quoted on tight spreads

Colour: Xiaomi is seeing bearish bets - Bloomberg

🔍Should Xiaomi rebound in the short-term from current share price levels, UURW will likewise magnify the move by approximately 6.3 times based on its effective gearing level of 6.3 as of 3PM today

📲Investors can simulate potential returns of this warrant based on their view on Xiaomi shares using the Warrant Calculator: https://warrants.com.sg/tools/warrantcalculator/UURW

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