SunGard's hottest stocks
08 July 2014 London
Image: Shutterstock
The hottest stocks from around the globe have been compiled by SunGard’s Astec Analytics.
The Swiss building materials company Holcim (HOLN.S) is Astec’s top pick in the EMEA for the week beginning 7 June as Holcim, along with potential partner Lafarge, outlined its respective divestiture plans in order to win over antitrust regulators that could stop the proposed €40 billion merger between the two.
Data from Astec suggests that short sellers may have been taking a growing interest in the company this past month, however, with borrowing of the company's stock having climbed fourfold in as many weeks, although even with these gains the net volume is still comparatively low.
UK online retailer Ocado Group (OCDO.L) is a new entrant in Astec’s list after the company announced it made £7.5 million in profit in the half-year, setting it up 2014 for, potentially, its first-ever annual profit.
Despite that, broader concerns about its growth prospects brought about a sell-off in its share price initially, although this was soon surpassed by a 25 percent gain in its stock in the following sessions. The borrowing data suggests short selling Ocado has been climbing steadily for the last month, with the number of shares being borrowed having now almost doubled since the start of June.
Kroger (KR) is Astec’s top pick for North America this week after news they have agreed to buy online seller of health and vitamin products, Vitacost, in a deal worth $280 million.
The move was in order to expand Kroger’s presence online, with CEO Rodney McMullen also saying the company will likely sell some of its own natural and organic foods to Vitacost's website.
While the company's share price effectively tread water during the week, Astec's data shows borrowing levels seemed to have evened out following a 75 percent decrease in June.
Action camera maker GoPro (GP) saw the first borrowing data coming into the system following its Initial Public Offering (IPO).
With the massive gain in shares seen in its first days of trade, the initial securities lending figures suggested short sellers were taking an immediate interest.
The cost of borrowing started in the 80 percent region, at which point it has remained, while utilisation of the available shares started at the 100 percent mark and has since only edged lower to around 90 percent.
For the Asia Pacific region, Chinese handset maker ZTE Corp. (0763.HK) is Astec’s top pick.
The outlook for its forthcoming "smartwatch" products has taken another turn for the worse as Kan Yulun, chief executive of the company's device operations outside Asia and the US, admitted retail sales of its current smartwatch are poor, in further signs the wearable technology sector has yet to reach the mainstream market.
Despite this news, however, the company's share price has been gaining ground during the week, while figures from Astec show borrowing of the stock has fallen 28 percent in the two weeks prior to 7 June.
SA SA International Holdings (0718.HK) also made its debut into Astec’s list in the week beginning 7 June. The Hong Kong-based cosmetics company saw positive sales figures pushed by 18 percent growth in Hong Kong and Macau.
The news helped push its shares more than 10 percent higher in the following sessions, although the latter half of the week saw some of these gains retraced, while the cost of borrowing suggests demand to short sell may have climbed in kind with the share gains; the rate tripled during the initial stock climb.
The Swiss building materials company Holcim (HOLN.S) is Astec’s top pick in the EMEA for the week beginning 7 June as Holcim, along with potential partner Lafarge, outlined its respective divestiture plans in order to win over antitrust regulators that could stop the proposed €40 billion merger between the two.
Data from Astec suggests that short sellers may have been taking a growing interest in the company this past month, however, with borrowing of the company's stock having climbed fourfold in as many weeks, although even with these gains the net volume is still comparatively low.
UK online retailer Ocado Group (OCDO.L) is a new entrant in Astec’s list after the company announced it made £7.5 million in profit in the half-year, setting it up 2014 for, potentially, its first-ever annual profit.
Despite that, broader concerns about its growth prospects brought about a sell-off in its share price initially, although this was soon surpassed by a 25 percent gain in its stock in the following sessions. The borrowing data suggests short selling Ocado has been climbing steadily for the last month, with the number of shares being borrowed having now almost doubled since the start of June.
Kroger (KR) is Astec’s top pick for North America this week after news they have agreed to buy online seller of health and vitamin products, Vitacost, in a deal worth $280 million.
The move was in order to expand Kroger’s presence online, with CEO Rodney McMullen also saying the company will likely sell some of its own natural and organic foods to Vitacost's website.
While the company's share price effectively tread water during the week, Astec's data shows borrowing levels seemed to have evened out following a 75 percent decrease in June.
Action camera maker GoPro (GP) saw the first borrowing data coming into the system following its Initial Public Offering (IPO).
With the massive gain in shares seen in its first days of trade, the initial securities lending figures suggested short sellers were taking an immediate interest.
The cost of borrowing started in the 80 percent region, at which point it has remained, while utilisation of the available shares started at the 100 percent mark and has since only edged lower to around 90 percent.
For the Asia Pacific region, Chinese handset maker ZTE Corp. (0763.HK) is Astec’s top pick.
The outlook for its forthcoming "smartwatch" products has taken another turn for the worse as Kan Yulun, chief executive of the company's device operations outside Asia and the US, admitted retail sales of its current smartwatch are poor, in further signs the wearable technology sector has yet to reach the mainstream market.
Despite this news, however, the company's share price has been gaining ground during the week, while figures from Astec show borrowing of the stock has fallen 28 percent in the two weeks prior to 7 June.
SA SA International Holdings (0718.HK) also made its debut into Astec’s list in the week beginning 7 June. The Hong Kong-based cosmetics company saw positive sales figures pushed by 18 percent growth in Hong Kong and Macau.
The news helped push its shares more than 10 percent higher in the following sessions, although the latter half of the week saw some of these gains retraced, while the cost of borrowing suggests demand to short sell may have climbed in kind with the share gains; the rate tripled during the initial stock climb.
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
