Asia Pac hot stocks to watch
25 March 2014 London
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The Chinese sourcing giant Li & Fung plans to spin off its branding and licensing division after 2013 profits climbed 17 percent, thanks to a turnaround in its US business.
SunGard called the firm its top pick of hot stocks for the week beginning 24 March, after the spin-off brought about a 20 percent jump in the company's share price.
In the immediate aftermath, data from SunGard's Astec Analytics suggests short sellers didn't see these gains as a reason to open new positions.
“This side of the market seems to have been taking a more optimistic view of the company since the start of February; since then the number of Li & Fung shares being borrowed has fallen 26 percent,” said a release from SunGard.
The next form on SunGard’s list is a new entrant into the ‘hot stocks’—China Cinda Asset Management. Bank of America Merrill Lynch raised their analysis on the stock from 'neutral' to 'buy,' suggesting that while the firm is exposed to risky areas such as property, but given the fall in its price and assuming the property market doesn't undergo any unforeseen corrections, "Cinda should have plenty of time to manage its risks".
On the securities lending front, SunGard indicated that its data shows borrowing of Cinda stock has been on the increase since its IPO in December last year, having climbed 44 percent in March alone.
Another stock to watch is the construction giant Leighton Holdings. The firm may face a fresh inquiry from Australian securities regulators over "tardy disclosure" in its write-down of bad debts, particularly relating to Chevron's Gorgon LNG project in Western Australia, “although Leighton reports these delays are in fact due to lengthy payment cycles and complex contract negotiations,” said SunGard.
“While the share price managed to shrug these allegations off in the near term, Astec data hints at increasing positions on the part of short sellers - albeit very mildly—with borrowing volumes up 3 percent in the week, and a total of 22 percent since the start of February.”
SunGard called the firm its top pick of hot stocks for the week beginning 24 March, after the spin-off brought about a 20 percent jump in the company's share price.
In the immediate aftermath, data from SunGard's Astec Analytics suggests short sellers didn't see these gains as a reason to open new positions.
“This side of the market seems to have been taking a more optimistic view of the company since the start of February; since then the number of Li & Fung shares being borrowed has fallen 26 percent,” said a release from SunGard.
The next form on SunGard’s list is a new entrant into the ‘hot stocks’—China Cinda Asset Management. Bank of America Merrill Lynch raised their analysis on the stock from 'neutral' to 'buy,' suggesting that while the firm is exposed to risky areas such as property, but given the fall in its price and assuming the property market doesn't undergo any unforeseen corrections, "Cinda should have plenty of time to manage its risks".
On the securities lending front, SunGard indicated that its data shows borrowing of Cinda stock has been on the increase since its IPO in December last year, having climbed 44 percent in March alone.
Another stock to watch is the construction giant Leighton Holdings. The firm may face a fresh inquiry from Australian securities regulators over "tardy disclosure" in its write-down of bad debts, particularly relating to Chevron's Gorgon LNG project in Western Australia, “although Leighton reports these delays are in fact due to lengthy payment cycles and complex contract negotiations,” said SunGard.
“While the share price managed to shrug these allegations off in the near term, Astec data hints at increasing positions on the part of short sellers - albeit very mildly—with borrowing volumes up 3 percent in the week, and a total of 22 percent since the start of February.”
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