SunGard’s hottest stocks
27 January 2015 Global
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SunGard’s Astec Analytics has compiled the hottest stocks from around the globe for the week beginning 19 January 2015.
The Danish pharmaceutical company Nova Nordisk (NOVO B.OMX) is Astec’s top pick for the Europe, Middle East and Africa region after the European Medicines agency recommended its new weight loss drug, Saxenda, for approval—paving the way for the company's efforts to launch the drug, which it believes could bring in $1 billion or more a year.
As its share price made good ground on the news, data from Astec has suggested short sellers have been closing out their positions throughout the week, with the number of Nova shares being borrowed falling 26 percent from 16 January to 23 January.
The Swiss-based offshore drilling contractor Transocean (RIG) has also been an EMEA focus for Astec, as its share price continues to suffer on the back of falling oil prices, with renewed attention after both ENI SpA and Total, the largest energy producer in Italy and France respectively, said they were cutting capital expenditure next year.
Astec said: “Amid speculation that the company may be the recipient of a bid from larger firms, its share price effectively tread water for most of the week. On the sec lending front however, our data shows a far clearer pattern, which hints at strong short selling interest growing since the start of December, with the number of RIG shares being borrowed climbing 33 percent in the time.”
Forex broker FXCM (FXCM) is Astec’s top pick for the Americas region after an announcement by the Swiss national bank, removing the cap on its currency, sent shockwaves through the industry and brought about a 90 percent sell-off in its shares as the firm looked set to suffer $225 million worth of losses because of the central bank's move.
With this share drop, short sellers were seemingly of a similarly negative opinion, with Astec's data showing borrowing volumes surging more than 66 percent over the past two weeks, while the cost of borrowing rocketed from just 20 basis points, to more than 8 percent at the close on 23 January
.
GoPro Inc. (GPRO) has also seen its share price boosted after news it has signed a deal with the NHL that will bring its wearable cameras to the ice, by allowing fans to see games from the perspective of players and referees.
Japan's fifth biggest trading and investment house, Marubeni Corporation (8002), is Astec’s top pick for the Asia Pacific region ahead of its latest earnings numbers; the release of which also brought with it write-downs totalling $1 billion because of the falling oil and copper prices, and caused the firm to halve its annual profit forecast.
While its share price climbed prior to the announcement, Astec’s data suggests short sellers were pessimistic of these gains from the start, with the number of shares being borrowed climbing 49 percent in the past two weeks.
Finally, Sharp (6753) has fallen to second place after its latest earnings numbers, which were dominated by a full-year profit warning that caused the shares to gap-down more than 5 percent at the start of the week.
The stock did manage to find a floor and level off since this point, although Astec's numbers do suggest demand to short sell the share may still be on the rise, with the cost of borrowing its stock climbing from just 0.6 percent to more than 2 percent during the week.
The Danish pharmaceutical company Nova Nordisk (NOVO B.OMX) is Astec’s top pick for the Europe, Middle East and Africa region after the European Medicines agency recommended its new weight loss drug, Saxenda, for approval—paving the way for the company's efforts to launch the drug, which it believes could bring in $1 billion or more a year.
As its share price made good ground on the news, data from Astec has suggested short sellers have been closing out their positions throughout the week, with the number of Nova shares being borrowed falling 26 percent from 16 January to 23 January.
The Swiss-based offshore drilling contractor Transocean (RIG) has also been an EMEA focus for Astec, as its share price continues to suffer on the back of falling oil prices, with renewed attention after both ENI SpA and Total, the largest energy producer in Italy and France respectively, said they were cutting capital expenditure next year.
Astec said: “Amid speculation that the company may be the recipient of a bid from larger firms, its share price effectively tread water for most of the week. On the sec lending front however, our data shows a far clearer pattern, which hints at strong short selling interest growing since the start of December, with the number of RIG shares being borrowed climbing 33 percent in the time.”
Forex broker FXCM (FXCM) is Astec’s top pick for the Americas region after an announcement by the Swiss national bank, removing the cap on its currency, sent shockwaves through the industry and brought about a 90 percent sell-off in its shares as the firm looked set to suffer $225 million worth of losses because of the central bank's move.
With this share drop, short sellers were seemingly of a similarly negative opinion, with Astec's data showing borrowing volumes surging more than 66 percent over the past two weeks, while the cost of borrowing rocketed from just 20 basis points, to more than 8 percent at the close on 23 January
.
GoPro Inc. (GPRO) has also seen its share price boosted after news it has signed a deal with the NHL that will bring its wearable cameras to the ice, by allowing fans to see games from the perspective of players and referees.
Japan's fifth biggest trading and investment house, Marubeni Corporation (8002), is Astec’s top pick for the Asia Pacific region ahead of its latest earnings numbers; the release of which also brought with it write-downs totalling $1 billion because of the falling oil and copper prices, and caused the firm to halve its annual profit forecast.
While its share price climbed prior to the announcement, Astec’s data suggests short sellers were pessimistic of these gains from the start, with the number of shares being borrowed climbing 49 percent in the past two weeks.
Finally, Sharp (6753) has fallen to second place after its latest earnings numbers, which were dominated by a full-year profit warning that caused the shares to gap-down more than 5 percent at the start of the week.
The stock did manage to find a floor and level off since this point, although Astec's numbers do suggest demand to short sell the share may still be on the rise, with the cost of borrowing its stock climbing from just 0.6 percent to more than 2 percent during the week.
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