Analysts are currently quite optimistic about stocks’ future, which is also reflected in Outokumpu’s share price performance. However, forecasting institutions do not share the same view – for example, the International Monetary Fund has even hinted at a recession risk. Geopolitical risks still exist, although the escalation of the situation in Iran has calmed down for now.
Outokumpu’s stock is indeed supported by several factors: EU safeguards, Germany’s stimulus package, and expectations of growing defense investments. A significant reduction in short positions may also contribute to price formation.
The question arises: is the chrome mine already priced into the current share price? If plans for chrome processing progress, could spinning off the mining operations and listing them as a separate public company create more shareholder value? Chrome production and processing differ significantly as a business from stainless steel manufacturing, so a separation could make the mine’s value more visible.
In any case, the role of shorters has clearly diminished
Outokumpu is no longer among the most shorted companies, and there is only one shorter left on the Financial Supervisory Authority’s (Finanssivalvonta) list. The share of shorted stocks has dropped to approximately 0.51 percent of all shares.