FIS hot stocks: 29 Feb
04 March 2016 London
Image: Shutterstock
Wirecard, Tesla Motors and Marvelous led the pack last week as short sellers capitalised on allegations of wrongdoing, charged ahead in the electric car market and used up another life in online games, according to FIS Astec Analytics.
Financial services company Wirecard was the FIS Astec Analytics top pick for Europe, the Middle East and Africa for the week beginning 29 February, after a report made allegations of wrongdoing.
Although they were denied and legal proceedings for slander were initiated, Wirecard’s shares slumped by a little under 20 percent, falling from €42 to €34.
“Short interest grew in volume only 0.5 percent over the last seven days, but as a proportion of shares available, there has been a disproportionate rise of more than 4 percent. This divergence indicates a falling supply level, which in turn suggests that institutional shareholders, who normally provide lendable supply, are selling out of their positions.”
The top pick for the Americas was Tesla Motors, whose regular appearances in the Astec Hot Stock’s list continued.
Short interest in Tesla appeared to be at a low after a slight recovery. The share price has dropped from the 12-month peak of $282 a share to $143 two weeks ago, suggesting a turnaround might be about to commence.
“[But] short sellers remain resolute and have, in fact, marginally increased their positions over the last two weeks, and much ground remains to be recovered in order to get within sight of the highs seen last year.”
Online Japanese videogame developer Marvelous, whose name has not reflected its share performance over the last 12 months, is the top pick for the Asia Pacific.
Astec has seen short interest in Marvelous double by volume over the same period. “Press releases from the end of January indicate that full year profits are up 26 percent and that the forecast for 2016 indicates a further 30 percent rise. However, since these upbeat announcements, short interest has risen by 10 percent and the share price has fallen.”
Financial services company Wirecard was the FIS Astec Analytics top pick for Europe, the Middle East and Africa for the week beginning 29 February, after a report made allegations of wrongdoing.
Although they were denied and legal proceedings for slander were initiated, Wirecard’s shares slumped by a little under 20 percent, falling from €42 to €34.
“Short interest grew in volume only 0.5 percent over the last seven days, but as a proportion of shares available, there has been a disproportionate rise of more than 4 percent. This divergence indicates a falling supply level, which in turn suggests that institutional shareholders, who normally provide lendable supply, are selling out of their positions.”
The top pick for the Americas was Tesla Motors, whose regular appearances in the Astec Hot Stock’s list continued.
Short interest in Tesla appeared to be at a low after a slight recovery. The share price has dropped from the 12-month peak of $282 a share to $143 two weeks ago, suggesting a turnaround might be about to commence.
“[But] short sellers remain resolute and have, in fact, marginally increased their positions over the last two weeks, and much ground remains to be recovered in order to get within sight of the highs seen last year.”
Online Japanese videogame developer Marvelous, whose name has not reflected its share performance over the last 12 months, is the top pick for the Asia Pacific.
Astec has seen short interest in Marvelous double by volume over the same period. “Press releases from the end of January indicate that full year profits are up 26 percent and that the forecast for 2016 indicates a further 30 percent rise. However, since these upbeat announcements, short interest has risen by 10 percent and the share price has fallen.”
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