Hottest stocks include BlackBerry and a snoring aid
24 September 2013 New York
Image: Shutterstock
SunGard released their top ten hottest stocks from a securities lending perspective, which saw BlackBerry and Arena Pharmaceuticals again making the list.
But it was Sears who took the number one seat, after a blow to sentiment last week after both Fitch Ratings and S&P lowered their credit ratings on the company’s debt.
“This came as the company set the terms for a $1 billion loan due 2018, which came in addition to its current £3.3 billion asset-based revolving credit facility due 2016,” said SunGard Astec Analytics.
“With this, SHLD shares lost approximately 4 percent in the latter half of the week, although data from SunGard’s Astec Analytics suggests those on the short side may be holding off from taking a negative view— borrowing volumes fell 7 percent in the week even as the share price slid.”
Second on the list was gun-maker Strum, Ruger & Company, whose CEO Michael Fifer sold almost 15,000 shares in an open market transaction, “seemingly benefiting from a number of stock upgrades for the gun maker and helping to put pressure on the share price during the week,” said SunGard.
On the borrowing front, it added, levels have continued to hover near the highest levels seen for the company on record, with only minimal retreat as the company’s share price halted its rally.
Taking third place was Opko Health, which recently saw CEO Phillip Frost resume his purchasing of company shares, with an additional 20,000 share buy taking his holdings in OPK to $1.3 billion.
Having seen a significant fall in borrowed volume earlier this month, last week saw the number bounce higher once again, up 15 percent, hinting at some renewed interest from short sellers despite the implicit positivity of internal share purchases.
Fourth was BlackBerry, which once again shot into the top 10 this week after it offered a profit warning; said it will be cutting up to 40 percent of its workforce on the back of lower earnings; and announced it will open up its instant messaging service for use on other platforms.
“Although its share price plummeted, borrowing saw a more muted reaction, with volumes climbing steadily during the week, up 4 percent.”
SunPower was fifth on the list. The firm received a stock upgrade from Zacks, which moved its shares from ‘neutral’ to ‘outperform, “although a number of insider share sales helped pressure the stock in the latter half of the week,” said SunGard.
On the borrowing front last week, the data shows a reduction in volumes, which fell around 4 percent, although SunGard added that overall levels are still near all-time highs, having tripled since the start of this year.
From six to ten on the list were 3D printing company ExOne, French oil company Total SA, Arena Pharmaceuticals, Potash producer Intrepid Potash, and ResMed, which made its first appearance in the Astec Analytics top 10.
The firm, which sells products to stop snoring, saw its shares climb as much as much as 15 percent in September as August finished with a number of stock upgrades. Last week showed approximately one quarter of these gains retraced however, while Astec’s data also showed borrowing volumes jumped 8 percent, “hinting that short sellers are moving with the long side of the market”.
But it was Sears who took the number one seat, after a blow to sentiment last week after both Fitch Ratings and S&P lowered their credit ratings on the company’s debt.
“This came as the company set the terms for a $1 billion loan due 2018, which came in addition to its current £3.3 billion asset-based revolving credit facility due 2016,” said SunGard Astec Analytics.
“With this, SHLD shares lost approximately 4 percent in the latter half of the week, although data from SunGard’s Astec Analytics suggests those on the short side may be holding off from taking a negative view— borrowing volumes fell 7 percent in the week even as the share price slid.”
Second on the list was gun-maker Strum, Ruger & Company, whose CEO Michael Fifer sold almost 15,000 shares in an open market transaction, “seemingly benefiting from a number of stock upgrades for the gun maker and helping to put pressure on the share price during the week,” said SunGard.
On the borrowing front, it added, levels have continued to hover near the highest levels seen for the company on record, with only minimal retreat as the company’s share price halted its rally.
Taking third place was Opko Health, which recently saw CEO Phillip Frost resume his purchasing of company shares, with an additional 20,000 share buy taking his holdings in OPK to $1.3 billion.
Having seen a significant fall in borrowed volume earlier this month, last week saw the number bounce higher once again, up 15 percent, hinting at some renewed interest from short sellers despite the implicit positivity of internal share purchases.
Fourth was BlackBerry, which once again shot into the top 10 this week after it offered a profit warning; said it will be cutting up to 40 percent of its workforce on the back of lower earnings; and announced it will open up its instant messaging service for use on other platforms.
“Although its share price plummeted, borrowing saw a more muted reaction, with volumes climbing steadily during the week, up 4 percent.”
SunPower was fifth on the list. The firm received a stock upgrade from Zacks, which moved its shares from ‘neutral’ to ‘outperform, “although a number of insider share sales helped pressure the stock in the latter half of the week,” said SunGard.
On the borrowing front last week, the data shows a reduction in volumes, which fell around 4 percent, although SunGard added that overall levels are still near all-time highs, having tripled since the start of this year.
From six to ten on the list were 3D printing company ExOne, French oil company Total SA, Arena Pharmaceuticals, Potash producer Intrepid Potash, and ResMed, which made its first appearance in the Astec Analytics top 10.
The firm, which sells products to stop snoring, saw its shares climb as much as much as 15 percent in September as August finished with a number of stock upgrades. Last week showed approximately one quarter of these gains retraced however, while Astec’s data also showed borrowing volumes jumped 8 percent, “hinting that short sellers are moving with the long side of the market”.
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