Top of hot stocks: REC Silicon ASA, Flybe Group, and Pinduoduo Inc
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Top of hot stocks: REC Silicon ASA, Flybe Group, and Pinduoduo Inc 21 November 2018London Reporter: Maddie Saghir
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REC Silicon ASA topped the FIS Astec Analytics hot stocks list for Europe, the Middle East, and Africa last week.
Making its debut, the Norway-based renewable energy equipment and services company, saw utilisation hit 100 percent last week, but on lower volumes, up a net 132 percent since June.
This indicates a contraction in supply as long investors reduce their positions. FIS noted that a glimmer of hope for a drop in tariffs and a rise in solar power subsidies has led to a bounce in the share price, closing last week at NOK 0.65, but with 100 of shares borrowed, the negative sentiment remains high.
Following REC Silicon was Flybe Group PLC, the UK-based regional airline, which also made its debut on the hot stocks last week.
According to FIS, short sellers paid little to no attention to Flybe over the last 24 months , until the first week of September when volume jumped which pushed utilisation from 3 percent to 18 percent.
The shares collapsed to under £0.15 in days and closed last week at under £0.09, less than 20 percent of its 12-month peak. FIS said that short sellers have closed out 23 percent of their positions, but utilisation has fallen by over 77 percent, suggesting some long investors are seeing this new low level as a buying opportunity.
Topping the Americas hot stocks list was Pinduoduo Inc, the China-based ecommerce platform, which closed the week at $20.83.
Of this FIS said that they have risen above the IPO once more, but with almost 60 percent of the shares available borrowed, short sellers remain very much in the game and expecting further downward pressure on Pinduoduo.
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