Hot stocks: what’s ready to pop?
30 January 2014 London
Image: Shutterstock
In the US, life science companies are the pick of the litter. Fees to borrow Myriad Genetics ($MYGN) have been trending considerably higher in the past week, according to DataLend. Utilisation has been climbing regularly over the past six months, remaining steady in this range since early December 2013.
Following the news that Myriad signed a deal with Sividon Diagnostics granting its exclusive rights to co-market Sividon's EndoPredict prognostic test kit for breast cancer patients outside of the US, the biotech company’s stock climbed in the latter sessions as it announced the date of its upcoming earnings results and a date for the presentation of results from its prostate cancer drug clinical trials, according to SunGard’s Astec Analytics.
As the shares gained, data from SunGard’s Astec Analytics suggested that short sellers continued to demand to borrow stock, although the high levels of utilisation in the shares “didn’t allow much room for increased borrowing, instead driving the cost of borrowing more than three-times higher to become one of the highest-cost US stocks on [the Astec Analytics] system”.
Mindray Medical ($MR) has seen considerable fluctuation in its stock price since the August peak, said DataLend. Fees to borrow rose to a high in late November 2013.
“While they are not to those levels now, they are up on the December dip. Utilisation is down slightly over this period.”
Arena Pharmaceuticals ($ARNA) utilisation is trending slightly higher over the past two months. Fees to borrow had been coming down from the late-November 2013 highs until they began climbing again in January to levels not seen since last May.
In the UK, Blinkx ($BLNX.LN) fees to borrow continue to stagger higher as the stock price has dipped this month, said DataLend. Utilisation has climbed to recent highs. This week, it was reported that the internet video and audio search engine’s founder would be joining a European venture capital firm.
Staying with technology, RadioShack Corp (RSH) was once again back in the SunGard’s Astec Analytics top 10, after its shares jumped the most in almost a year after an online report by securities research firm The Motley Fool was positive about Litespeed Management LLC’s investment in the company.
As the shares climbed more than 25 percent to peak mid-week, borrowing figures eased off, suggesting those on the short side were following the cash market’s attitude, said SunGard’s Astec Analytics.
“Even as these gains were retraced in the latter half of the week, Astec’s numbers show borrowing continued to fall, although at approximately a 4 percent decrease these levels are still far from suggesting a turnaround in shorting activity.”
Sears Holdings Corp (SHLD), SandRidge Energy Inc (SD), PSA Peugeot Citroën SA (UG.PA), Alcoa Inc (AA), SSAB Swedish Steel AB (SSABA.OMX), InterOil Corp (IOC), J.C. Penney Inc (JCP) and Tesla Motors Inc (TSLA) rounded off the SunGard’s Astec Analytics top-10 stock for the week.
Those with an eye on the Asia Pacific should look to GungHo Online ($3765.JP), according to DataLend, as its fees to borrow dipped late in December 2013 for the first time in a while, “but they are trending even higher now”.
“The stock price continues to slide from the May peak, albeit at a decelerated pace more recently.”
Celltrion ($068270.KS) fees to borrow are trending slightly higher this month, while utilisation continues its gradual rise. “Reports of possible acquisition talks for the biotech firm nudged the stock price slightly higher earlier this month, but it is down a touch since then,” said DataLend.
Following the news that Myriad signed a deal with Sividon Diagnostics granting its exclusive rights to co-market Sividon's EndoPredict prognostic test kit for breast cancer patients outside of the US, the biotech company’s stock climbed in the latter sessions as it announced the date of its upcoming earnings results and a date for the presentation of results from its prostate cancer drug clinical trials, according to SunGard’s Astec Analytics.
As the shares gained, data from SunGard’s Astec Analytics suggested that short sellers continued to demand to borrow stock, although the high levels of utilisation in the shares “didn’t allow much room for increased borrowing, instead driving the cost of borrowing more than three-times higher to become one of the highest-cost US stocks on [the Astec Analytics] system”.
Mindray Medical ($MR) has seen considerable fluctuation in its stock price since the August peak, said DataLend. Fees to borrow rose to a high in late November 2013.
“While they are not to those levels now, they are up on the December dip. Utilisation is down slightly over this period.”
Arena Pharmaceuticals ($ARNA) utilisation is trending slightly higher over the past two months. Fees to borrow had been coming down from the late-November 2013 highs until they began climbing again in January to levels not seen since last May.
In the UK, Blinkx ($BLNX.LN) fees to borrow continue to stagger higher as the stock price has dipped this month, said DataLend. Utilisation has climbed to recent highs. This week, it was reported that the internet video and audio search engine’s founder would be joining a European venture capital firm.
Staying with technology, RadioShack Corp (RSH) was once again back in the SunGard’s Astec Analytics top 10, after its shares jumped the most in almost a year after an online report by securities research firm The Motley Fool was positive about Litespeed Management LLC’s investment in the company.
As the shares climbed more than 25 percent to peak mid-week, borrowing figures eased off, suggesting those on the short side were following the cash market’s attitude, said SunGard’s Astec Analytics.
“Even as these gains were retraced in the latter half of the week, Astec’s numbers show borrowing continued to fall, although at approximately a 4 percent decrease these levels are still far from suggesting a turnaround in shorting activity.”
Sears Holdings Corp (SHLD), SandRidge Energy Inc (SD), PSA Peugeot Citroën SA (UG.PA), Alcoa Inc (AA), SSAB Swedish Steel AB (SSABA.OMX), InterOil Corp (IOC), J.C. Penney Inc (JCP) and Tesla Motors Inc (TSLA) rounded off the SunGard’s Astec Analytics top-10 stock for the week.
Those with an eye on the Asia Pacific should look to GungHo Online ($3765.JP), according to DataLend, as its fees to borrow dipped late in December 2013 for the first time in a while, “but they are trending even higher now”.
“The stock price continues to slide from the May peak, albeit at a decelerated pace more recently.”
Celltrion ($068270.KS) fees to borrow are trending slightly higher this month, while utilisation continues its gradual rise. “Reports of possible acquisition talks for the biotech firm nudged the stock price slightly higher earlier this month, but it is down a touch since then,” said DataLend.
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