The squeeze in power generator supplier Aggreko PLC shares proved short-lived and the stock appears to be heading back to a chart support as earnings and revenue forecasts come under pressure.
** Aggreko is the 4th most-borrowed stock on the FTSE 100 according to Markit with more than a fifth of the shares available to be borrowed out on loan. Vedanta, CRH PLC & J Sainsbury are the top three.
** Six analysts have cut EPS and revenue estimates for 2014 since the company reported numbers last week and mean earnings estimate is down 2.5% over that period.
** 'Sell' ratings are on the increase, particularly among the better ranked analysts, and the stock price is now close to the average price target on the Street.
** On the charts, Aggreko is moving back to prior lows from which it has bounced back thrice this year.
** But with the shorts covering following results support from that front may be limited if further downgrades are on their way.