SunGard's hottest stocks
20 August 2014 Global
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The hottest stocks from around the globe for the week beginning 18 August 2014 have been compiled by SunGard’s Astec Analytics.
Mining conglomerate BHP Billiton (BLT.L) is Astec’s top pick for the EMEA region as it emerged it may be considering some type of asset spin-off, causing its shares to lose ground.
This talk has now been proven true—the company announced along with its latest results that it will be divesting assets across five countries in a move that will see numerous aluminum, coal, silver and manganese mines under the banner of a new company, which will be listed in Australia and South Africa.
On the securities lending front, data from Astec suggests that the sell-off in the cash market brought a surge of short covering, as borrowing volumes dropped 16 percent in one day.
Italian automaker Fiat (F.MI) has also been selected by Astec as its planned merger with Chrysler hits a bump in the road, with some shareholders now opposing the tie-up.
Despite this, Fiat's shares made decent gains during the week, while on the borrowing front Astec’s data suggests short sellers were perhaps of a similar mind in regards to this outlook, with the number of shares being borrowed falling about 10 percent.
US discount retailer Family Dollar Stores (FDO) is Astec’s top pick for the US as it became the target of a cash bid, now known to be a $9.7 billion offer from rival Dollar General, coming just weeks after the company agreed to a merger with Dollar Tree.
Dollar General confirmed, if necessary, they would be willing to pay Dollar Tree a termination fee if FDO's board switched its recommendation.
While the company's share price has held fairly steady after the initial jump on the FDO-Dollar Tree merger at the end of July, data from Astec suggests this latest news has brought about interest from short sellers, with borrowing volumes climbing about 22 percent.
The hot stocks regular, 3D Systems Corp (DDD), is back in Astec’s list after it announced the acquisition of American Precision Prototyping and sister company American Precision Machining, a move it hopes will strengthen its manufacturing and aerospace capabilities.
While the news did little to push the DDD's stock in either direction, Astec's data suggests short sellers were optimistic of the company's prospects, with borrowing volumes falling about 10 percent in the week.
Japanese auto components manufacturer NTN Corp (6472) is Astec’s top pick for the Asia Pacific region as it became one of the first companies to receive a fine from the Chinese government related to its investigation into pricing practices of the industry—NTN is set to pay $19.4 million.
NTN's share price was already suffering on the back of its latest batch of earnings numbers at the end of July, which has translated to similar sentiment on the short side, with Astec’s data showing the number of NTN shares being borrowed climbing about 50 percent in August.
In its first entry in Astec’s hot stocks, Aluminum Corporation of China (2600.HK) was also singled out in the Asia Pacific region as trading activity for the week beginning 18 August was dictated by Morgan Stanley report suggesting the stock rally seen since June is unsustainable.
Astec's data suggests short sellers are of a similar opinion to Morgan Stanley, as the growing share price has brought about increased borrowing, which climbed 9 percent in the previous week alone
Mining conglomerate BHP Billiton (BLT.L) is Astec’s top pick for the EMEA region as it emerged it may be considering some type of asset spin-off, causing its shares to lose ground.
This talk has now been proven true—the company announced along with its latest results that it will be divesting assets across five countries in a move that will see numerous aluminum, coal, silver and manganese mines under the banner of a new company, which will be listed in Australia and South Africa.
On the securities lending front, data from Astec suggests that the sell-off in the cash market brought a surge of short covering, as borrowing volumes dropped 16 percent in one day.
Italian automaker Fiat (F.MI) has also been selected by Astec as its planned merger with Chrysler hits a bump in the road, with some shareholders now opposing the tie-up.
Despite this, Fiat's shares made decent gains during the week, while on the borrowing front Astec’s data suggests short sellers were perhaps of a similar mind in regards to this outlook, with the number of shares being borrowed falling about 10 percent.
US discount retailer Family Dollar Stores (FDO) is Astec’s top pick for the US as it became the target of a cash bid, now known to be a $9.7 billion offer from rival Dollar General, coming just weeks after the company agreed to a merger with Dollar Tree.
Dollar General confirmed, if necessary, they would be willing to pay Dollar Tree a termination fee if FDO's board switched its recommendation.
While the company's share price has held fairly steady after the initial jump on the FDO-Dollar Tree merger at the end of July, data from Astec suggests this latest news has brought about interest from short sellers, with borrowing volumes climbing about 22 percent.
The hot stocks regular, 3D Systems Corp (DDD), is back in Astec’s list after it announced the acquisition of American Precision Prototyping and sister company American Precision Machining, a move it hopes will strengthen its manufacturing and aerospace capabilities.
While the news did little to push the DDD's stock in either direction, Astec's data suggests short sellers were optimistic of the company's prospects, with borrowing volumes falling about 10 percent in the week.
Japanese auto components manufacturer NTN Corp (6472) is Astec’s top pick for the Asia Pacific region as it became one of the first companies to receive a fine from the Chinese government related to its investigation into pricing practices of the industry—NTN is set to pay $19.4 million.
NTN's share price was already suffering on the back of its latest batch of earnings numbers at the end of July, which has translated to similar sentiment on the short side, with Astec’s data showing the number of NTN shares being borrowed climbing about 50 percent in August.
In its first entry in Astec’s hot stocks, Aluminum Corporation of China (2600.HK) was also singled out in the Asia Pacific region as trading activity for the week beginning 18 August was dictated by Morgan Stanley report suggesting the stock rally seen since June is unsustainable.
Astec's data suggests short sellers are of a similar opinion to Morgan Stanley, as the growing share price has brought about increased borrowing, which climbed 9 percent in the previous week alone
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