US Airways Group at top of the shorting pile
28 November 2013 London
Image: Shutterstock
SunGard Astec Analytics released its top ten hottest stocks from a securities lending perspective, which gave US Airways Group the top spot.
“As news of the DOJ agreement continues to dominate headlines for LCC, last week saw its share price pull back a little, although it managed to squeeze out a positive session Friday,” said a statement from SunGard.
On the short selling front however, the securities lending numbers from SunGard’s Astec Analytics seem to show a clear pattern. The number of LCC shares being borrowed continued to build last week, up an additional 12 percent for an overall increase of 175 percent since the beginning of November, hinting that those on the short side may see the share prices gains as somewhat overheated.
Second in the top ten was Advanced Micro Devices, which saw its share price ease back slightly last week, even as news emerged it would be receiving $3.1 million from the U.S. Department of Energy as part of the DOE’s extreme-scale computing programme.
“In addition, a battle of computer consoles looks set to come underway over the Christmas period, with Sony’s PlayStation 4, which uses AMD chips, and Microsoft’s Xbox One set to compete of the gift-giving season."
"Meanwhile, on the sec lending front, volumes actually seem to be on the decline overall, with the number of AMD shares borrowed falling about 8 percent last week. Likewise, higher levels of short covering seem to be taking place, with the total number of closed loans last week, more than double the number of new loans opened.”
Opko Health, Polypore International, and Tesla Motors took places three, four and five respectively. Twitter and Royal Mail also made the top 10, with SunGard stating that relatively muted borrowing meant that drawing too much conclusion about short-selling activity is perhaps hasty at this point, “particularly as the cost of borrowing having lost its initial levels in the first days of trade has been holding steady ever since.”
The Royal Mail Group has been in the news recently, as a parliamentary committee began an inquiry into the reasoning behind the company’s listing price, seen by many as too low following the large gains made in the first days of trade.
Meanwhile, data from Astec has strengthened the early perspective that short sellers were not betting against these gains, with borrowed volumes now only one-tenth of the levels at the end of October, now at levels that would suggest the short side has little to no real interest in the stock.
“As news of the DOJ agreement continues to dominate headlines for LCC, last week saw its share price pull back a little, although it managed to squeeze out a positive session Friday,” said a statement from SunGard.
On the short selling front however, the securities lending numbers from SunGard’s Astec Analytics seem to show a clear pattern. The number of LCC shares being borrowed continued to build last week, up an additional 12 percent for an overall increase of 175 percent since the beginning of November, hinting that those on the short side may see the share prices gains as somewhat overheated.
Second in the top ten was Advanced Micro Devices, which saw its share price ease back slightly last week, even as news emerged it would be receiving $3.1 million from the U.S. Department of Energy as part of the DOE’s extreme-scale computing programme.
“In addition, a battle of computer consoles looks set to come underway over the Christmas period, with Sony’s PlayStation 4, which uses AMD chips, and Microsoft’s Xbox One set to compete of the gift-giving season."
"Meanwhile, on the sec lending front, volumes actually seem to be on the decline overall, with the number of AMD shares borrowed falling about 8 percent last week. Likewise, higher levels of short covering seem to be taking place, with the total number of closed loans last week, more than double the number of new loans opened.”
Opko Health, Polypore International, and Tesla Motors took places three, four and five respectively. Twitter and Royal Mail also made the top 10, with SunGard stating that relatively muted borrowing meant that drawing too much conclusion about short-selling activity is perhaps hasty at this point, “particularly as the cost of borrowing having lost its initial levels in the first days of trade has been holding steady ever since.”
The Royal Mail Group has been in the news recently, as a parliamentary committee began an inquiry into the reasoning behind the company’s listing price, seen by many as too low following the large gains made in the first days of trade.
Meanwhile, data from Astec has strengthened the early perspective that short sellers were not betting against these gains, with borrowed volumes now only one-tenth of the levels at the end of October, now at levels that would suggest the short side has little to no real interest in the stock.
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