The nation’s second-most shorted stock may actually inflict some pain on those betting on its failure.
For Wm Morrison Morrison Supermarkets (LON:MRW) weighed in with better than expected underlying third quarter sales growth.
Like-for-like revenues expanded at 1.6% compared with analysts’ forecasts of 1-1.5%.
While a slowdown from the 2% posted in the previous three months, it represents the fourth straight quarter of underlying growth under chief executive David Potts.
Potts was brought in from Tesco PLC (LON:TSCO) with a mandate to kick start the revival at the Bradford-based retailer, which had struggled in the face of intense competition from the retailers and revitalised Tesco and combative Sainsbury.
He has done so by cutting costs and smartening up Morrisons’ offering.
Today’s figures point to the real loser being Wal-Mart-owned Asda, which recent industry figures showed was haemorrhaging market share.
Chief executive Potts said: "Our like-for-like sales have now been positive for a year, which is thanks to the hard work and dedication of the whole Morrisons team.
“There is a lot more we plan to do. We will keep investing in becoming more competitive and improving the shopping trip, and I am confident we will serve our customers even better during the important trading period ahead."
According to the website Short Interest Tracker, Morrisons is the second-most shorted stock on the FTSE 100 with around 17% of its shares out on loan.
Shorting is effectively betting on the failure of companies such as the grocer. Speculators borrow equity from institutions to cover their ‘sell’ or ‘short’ positions.
The most shorted stock on the market currently is the construction firm Carillion (LON:CLLN), with over a fifth of shares on loan to traders.