Short positions are building up in the shares of Nokia Corporation (ADR)(NYSE:NOK), hinting at quarterly results that might be disappointing for the Street.
The Financial Times reported that short positions are at all-time record lows with up to 90 percent of shares available for shorting being borrowed.
Data from Markit shows that about 16 percent of the total shares in the company are out on loan currently against 9.5 percent at the beginning of September.
The Financial Times said that investors are betting that there could be more bad news for the European company. The current short position is a result of investor expectations that its handset sales will lag those of Apple.
Apple's new iPhones are seeing an unprecedented sales response with record numbers already being pre-ordered via Apple's site.
Will NOK Hit $5 This Year? Find Out Here
Nokia unveiled its new generation Lumia phones head of Apple but they are expected to be on store shelves only in November, after Microsoft is ready with its Windows Phone 8 software.
"Analysts have warned that the next quarter could be grim for Nokia, given further pressure on sales and discounting of its existing ranges," said the Financial Times.
Research from Astec Analytics, the US research group owned by SunGard, shows that the level of Nokia stock out on loan has reached a record, with 184 million shares on loan.
Shares in Nokia were trading down 2.8 percent at $2.77 in New York.