SunGard’s hottest stocks
04 November 2015 London
Image: Shutterstock
SunGard’s Astec Analytics has compiled its list of the most desirable stocks for securities lending for the week beginning 2 November.
This week’s data revealed limited movement in borrowing interest in all global regions with several names re-appearing for a second or third week in a row.
Q3 results were a common driver in maintaining shorting interest as figures highlighted some companies’ struggles and reinforced short sellers bearish stance.
BAE Systems, the British aerospace and defense manufacturer, is SunGard’s top pick for Europe, the Middle East and Africa. Borrowing interest was driven by news it is taking on a 20 percent stake in Reaction Engines, as part of its drive towards investment in reusable rocket planes.
Securities lending data from Astec Analytics suggested short sellers have been increasing positions even as the stock fell, with borrowing volumes climbing 25 percent in the past four weeks.
LivaNova retained its second place position. The new pharmaceutical company is the product of a merger between Sorin SpA and Cyberonics in October and short sellers are hedging that it has been trading at inflated prices since being floated.
Astec data highlighted that borrowing volumes climbed significantly as the stock price gained ground but equally pulled back quickly once the price dropped.
Currently, borrowed shares stand at 56 percent from their highest level, which was hit on 22 October.
Another non-mover is ArcelorMittal SA, which remained in the spotlight as it maintains a ‘business cooperation’ with Chinese manufacturer Sutor Technology Group.
Astec’s latest data noted that short sellers have been covering their positions as the share price fell, with volumes falling 6 percent during the week.
In the Americas, there was a similar pattern of non-moving companies enduring another week of attention from short sellers.
American International Group (AIG) took the top spot thanks to its future being called into question by a significant investor, which further fueled short sellers that have been building positions for the past two weeks.
Borrowing volumes are up 46 percent after activist investor Carl Icahn, who has been accumulating a significant stake in the company, called for the group to be broken up.
GoPro, now a SunGard ‘hot stocks’ regular, reinforced its position with its announcement of disappointing Q3 earnings results, which were lower than expected.
The news caused a 14 percent sell off in shares and pushed borrowing figures above 98 percent. Short sellers have sensed blood in the water and the intense shorting interest pushed borrowing prices from 11 to 19 percent on 30 October.
Chesapeake Energy Corporation returned for another week and moved up to third place, just above Weight Watchers International.
Borrowing interest in the energy provider was driven by the widespread oil production cuts in south Texas, a key market for Chesapeake.
Borrowing soared after the cutbacks were announced with roughly nine million new borrows in the past week.
The number one spot for the Asia Pacific region was taken by another hot stocks regular, Samsung.
This came despite a positive Q3 result, which noted a 29 percent year-on-year growth. The strong figures caused short sellers to become more bullish and allowed borrowing interest to fall by roughly 49 percent.
Next was Singapore Press Holdings, which was up one from its previous position. The growing interest was caused by claims that its Chinese media group arm is consolidating its digital resources under a new unit, called CMG Digital.
It was a good month for the media group overall that only tapered off in the last week of October. Borrowing volumes fell by about five million shares over the course of the month.
This week’s data revealed limited movement in borrowing interest in all global regions with several names re-appearing for a second or third week in a row.
Q3 results were a common driver in maintaining shorting interest as figures highlighted some companies’ struggles and reinforced short sellers bearish stance.
BAE Systems, the British aerospace and defense manufacturer, is SunGard’s top pick for Europe, the Middle East and Africa. Borrowing interest was driven by news it is taking on a 20 percent stake in Reaction Engines, as part of its drive towards investment in reusable rocket planes.
Securities lending data from Astec Analytics suggested short sellers have been increasing positions even as the stock fell, with borrowing volumes climbing 25 percent in the past four weeks.
LivaNova retained its second place position. The new pharmaceutical company is the product of a merger between Sorin SpA and Cyberonics in October and short sellers are hedging that it has been trading at inflated prices since being floated.
Astec data highlighted that borrowing volumes climbed significantly as the stock price gained ground but equally pulled back quickly once the price dropped.
Currently, borrowed shares stand at 56 percent from their highest level, which was hit on 22 October.
Another non-mover is ArcelorMittal SA, which remained in the spotlight as it maintains a ‘business cooperation’ with Chinese manufacturer Sutor Technology Group.
Astec’s latest data noted that short sellers have been covering their positions as the share price fell, with volumes falling 6 percent during the week.
In the Americas, there was a similar pattern of non-moving companies enduring another week of attention from short sellers.
American International Group (AIG) took the top spot thanks to its future being called into question by a significant investor, which further fueled short sellers that have been building positions for the past two weeks.
Borrowing volumes are up 46 percent after activist investor Carl Icahn, who has been accumulating a significant stake in the company, called for the group to be broken up.
GoPro, now a SunGard ‘hot stocks’ regular, reinforced its position with its announcement of disappointing Q3 earnings results, which were lower than expected.
The news caused a 14 percent sell off in shares and pushed borrowing figures above 98 percent. Short sellers have sensed blood in the water and the intense shorting interest pushed borrowing prices from 11 to 19 percent on 30 October.
Chesapeake Energy Corporation returned for another week and moved up to third place, just above Weight Watchers International.
Borrowing interest in the energy provider was driven by the widespread oil production cuts in south Texas, a key market for Chesapeake.
Borrowing soared after the cutbacks were announced with roughly nine million new borrows in the past week.
The number one spot for the Asia Pacific region was taken by another hot stocks regular, Samsung.
This came despite a positive Q3 result, which noted a 29 percent year-on-year growth. The strong figures caused short sellers to become more bullish and allowed borrowing interest to fall by roughly 49 percent.
Next was Singapore Press Holdings, which was up one from its previous position. The growing interest was caused by claims that its Chinese media group arm is consolidating its digital resources under a new unit, called CMG Digital.
It was a good month for the media group overall that only tapered off in the last week of October. Borrowing volumes fell by about five million shares over the course of the month.
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