Caterpillar and Nintendo are new top picks
04 February 2014 London
Image: Shutterstock
SunGard has released its hottest stocks globally, which saw BT Group, Caterpillar and Nintendo as top picks.
BT Group was the best choice for the EMEA region, with the week beginning 27 January seeing some skepticism coming from short sellers in the run-up to the UK telephone operator's latest batch of earnings numbers, said SunGard. The number of BT shares being borrowed climbed four-fold in a matter of days.
“Tellingly, despite the numbers eventually coming through better than expected, pushing a jump in the share price, data suggests shorting has not declined, but actually edged slightly higher.”
The top pick for North America was Caterpillar, which is the world's largest producer of heavy machinery. The firm announced last week that it is accelerating a $1.7 billion stock repurchase programme, due to a strong balance sheet. The firm also blamed the European Central Bank and "cautious policies" as bringing about a divergence in growth between the EU and the US.
Meanwhile, as the share price climbed approximately 10 percent on the share-purchase news, data from Astec Analytics showed that the number of shares being borrowed jumped almost three times in the last two sessions of the week.
In the Asia Pacific region, Nintendo was deemed the best bet, with the computer console giant seeing its share lose another 13 percent last week after a strategy meeting failed to improve the sentiment of investors after the company announced it no longer expects to be posting a profit in this financial year.
With the profit warning, and tellingly despite the large drop in share price, data from SunGard's Astec Analytics suggests short sellers have rushed to open positions in the company. The number of Nintendo shares being borrowed; the prerequisite of short selling them, has more than doubled since 22 January, hitting its highest level in more than six months.
BT Group was the best choice for the EMEA region, with the week beginning 27 January seeing some skepticism coming from short sellers in the run-up to the UK telephone operator's latest batch of earnings numbers, said SunGard. The number of BT shares being borrowed climbed four-fold in a matter of days.
“Tellingly, despite the numbers eventually coming through better than expected, pushing a jump in the share price, data suggests shorting has not declined, but actually edged slightly higher.”
The top pick for North America was Caterpillar, which is the world's largest producer of heavy machinery. The firm announced last week that it is accelerating a $1.7 billion stock repurchase programme, due to a strong balance sheet. The firm also blamed the European Central Bank and "cautious policies" as bringing about a divergence in growth between the EU and the US.
Meanwhile, as the share price climbed approximately 10 percent on the share-purchase news, data from Astec Analytics showed that the number of shares being borrowed jumped almost three times in the last two sessions of the week.
In the Asia Pacific region, Nintendo was deemed the best bet, with the computer console giant seeing its share lose another 13 percent last week after a strategy meeting failed to improve the sentiment of investors after the company announced it no longer expects to be posting a profit in this financial year.
With the profit warning, and tellingly despite the large drop in share price, data from SunGard's Astec Analytics suggests short sellers have rushed to open positions in the company. The number of Nintendo shares being borrowed; the prerequisite of short selling them, has more than doubled since 22 January, hitting its highest level in more than six months.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
