SunGard’s hottest stocks
03 February 2015 Global
Image: Shutterstock
SunGard’s Astec Analytics has compiled the hottest stocks from around the globe for the week beginning 26 January 2015.
British fashion label Burberry Group (BRBY.L) is Astec’s top pick in Europe after Credit Suisse turned its rating negative for the stock, suggesting sales growth may have peaked and that "there is little room for gross margin expansion".
The company's shares lost ground on the move, while on the borrowing front data from Astec has suggested short sellers increased their bets on the downside—the number of Burberry shares being borrowed climbing 8 percent in the week.
Also making noise in Europe is Swiss-based offshore drilling contractor Transocean (RIG), which has seen focus coming from fluctuations and uncertainty in the commodity market, with an 8 percent jump in the price of West Texas Intermediate Crude bringing about a 4 percent increase in its share price.
Astec commented: “Our data does suggest this brought about some very mild short covering during the session, however for the most part borrowing volumes held fairly flat week-on-week. That said, the figures also hint at a potential for increased demand to short sell the shares, with the cost of borrowing them having climbed from just 6 percent to over 17 percent in the past two weeks.”
The US listing of the Chinese e-commerce firm Alibaba (BABA) is Astec’s top pick for the Americas after it posted negative earnings numbers.
Although borrowing volumes have held flat, there was an 8 percent increase from the previous week, hinting that short sellers betting on the downside then, are holding on for yet further losses.
Ultra Petroleum (UPL) has seen renewed focus this week after Goldman Sachs downgraded its shares from “neutral” to “sell”, citing deflationary pressure in the oil and natural gas markets.
Despite this, its share price had a somewhat mixed reaction in the cash market, while Astec's figures suggest demand to short sell continued to climb—the cost of borrowing jumping from 27 percent to 56 percent in the last few sessions of the week.
Singapore-listed property developer Yoma Strategic Holdings (Z59.SI) is Astec’s top pick for the Asia Pacific region in the run-up to its earnings release on 6 February.
On the sec lending front, Astec’s data shows borrowing volumes have been rising steadily for the past month, with the number of Yoma shares being borrowed have climbed 67 percent since 1 January.
Finally, Japanese household name Sharp (6753) has continued to see attention following its profit warning last month, with some additional focus amid talk that it is nearing a deal to sell its Recurrent Energy solar unit in the US.
The news has led to some volatile trading action in the cash market, while on the borrowing front Astec’s data has hinted at a drop in demand to short sell the stock—the cost of borrowing falling from almost 5 percent to less than 1 percent over just three sessions.
British fashion label Burberry Group (BRBY.L) is Astec’s top pick in Europe after Credit Suisse turned its rating negative for the stock, suggesting sales growth may have peaked and that "there is little room for gross margin expansion".
The company's shares lost ground on the move, while on the borrowing front data from Astec has suggested short sellers increased their bets on the downside—the number of Burberry shares being borrowed climbing 8 percent in the week.
Also making noise in Europe is Swiss-based offshore drilling contractor Transocean (RIG), which has seen focus coming from fluctuations and uncertainty in the commodity market, with an 8 percent jump in the price of West Texas Intermediate Crude bringing about a 4 percent increase in its share price.
Astec commented: “Our data does suggest this brought about some very mild short covering during the session, however for the most part borrowing volumes held fairly flat week-on-week. That said, the figures also hint at a potential for increased demand to short sell the shares, with the cost of borrowing them having climbed from just 6 percent to over 17 percent in the past two weeks.”
The US listing of the Chinese e-commerce firm Alibaba (BABA) is Astec’s top pick for the Americas after it posted negative earnings numbers.
Although borrowing volumes have held flat, there was an 8 percent increase from the previous week, hinting that short sellers betting on the downside then, are holding on for yet further losses.
Ultra Petroleum (UPL) has seen renewed focus this week after Goldman Sachs downgraded its shares from “neutral” to “sell”, citing deflationary pressure in the oil and natural gas markets.
Despite this, its share price had a somewhat mixed reaction in the cash market, while Astec's figures suggest demand to short sell continued to climb—the cost of borrowing jumping from 27 percent to 56 percent in the last few sessions of the week.
Singapore-listed property developer Yoma Strategic Holdings (Z59.SI) is Astec’s top pick for the Asia Pacific region in the run-up to its earnings release on 6 February.
On the sec lending front, Astec’s data shows borrowing volumes have been rising steadily for the past month, with the number of Yoma shares being borrowed have climbed 67 percent since 1 January.
Finally, Japanese household name Sharp (6753) has continued to see attention following its profit warning last month, with some additional focus amid talk that it is nearing a deal to sell its Recurrent Energy solar unit in the US.
The news has led to some volatile trading action in the cash market, while on the borrowing front Astec’s data has hinted at a drop in demand to short sell the stock—the cost of borrowing falling from almost 5 percent to less than 1 percent over just three sessions.
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