FIS hot stocks: 07 March
11 March 2016 London
Image: Shutterstock
The mining industry can see light at the end of the tunnel, but automotion continues to stall and manufacturing remains jammed, according to FIS Astec Analytics.
Swiss commodity trading and mining company and Astec Analytics Hot Stocks regular Glencore took the top spot for Europe, the Middle East and Africa despite seeing its share price jump from 71 pence in January to close at £1.60 last week.
Glencore, along with the rest of the industrial metal industry is enjoying a six-week bull run, according to Astec’s data, but borrowing volumes also rose 40 percent in the same period.
Short sellers are betting on another slump, similar to the one in summer last year that saw Glencore’s share price plummet from £3.13 in April, to 68 pence in September. However, as Astec notes, if the good run in metal and mining continues short sellers will be punished for their pessimism.
In the Americas, Tesla Motors, another familiar Hot Stocks name, hit rock bottom on 10 February with a 12-month share price low of $143 (compared to $282 in July 2015), according to Astec.
Last week, however, the US manufacturer saw its share price rocket up to $201, although market analytics were quick to denounce the movement as a ‘dead cat bounce’.
This was later reinforced by the fact borrowing volume only dropped slightly in reaction to the recovery, but cost to borrow jumped a further 20 percent by the end of last week.
Astec suggested that: Combine these statistics with the jump seen in the share price and, if the borrow volume as a proportion of the available shares was increasing rather than decreasing, a short squeeze would definitely be driving the borrowing market for Tesla.
To the east in the Asia Pacific watch maker and manufacturer Citizen Holdings earned borrowing interest after the company’s share price hit a 12-month low of CNY 607 ($93.36) on 1 March, compared to CNY 969 ($149) in April 2015.
Astec data shows that around two-thirds of the company’s loss has come in 2016 and short sellers have accordingly built positions by 20 percent in the same period.
Many short sellers recently cashed in on significant profits from their gamble but a 4 percent price recovery has tempted some to open new positions, with borrow volume up by 51 percent in the past week alone.
Swiss commodity trading and mining company and Astec Analytics Hot Stocks regular Glencore took the top spot for Europe, the Middle East and Africa despite seeing its share price jump from 71 pence in January to close at £1.60 last week.
Glencore, along with the rest of the industrial metal industry is enjoying a six-week bull run, according to Astec’s data, but borrowing volumes also rose 40 percent in the same period.
Short sellers are betting on another slump, similar to the one in summer last year that saw Glencore’s share price plummet from £3.13 in April, to 68 pence in September. However, as Astec notes, if the good run in metal and mining continues short sellers will be punished for their pessimism.
In the Americas, Tesla Motors, another familiar Hot Stocks name, hit rock bottom on 10 February with a 12-month share price low of $143 (compared to $282 in July 2015), according to Astec.
Last week, however, the US manufacturer saw its share price rocket up to $201, although market analytics were quick to denounce the movement as a ‘dead cat bounce’.
This was later reinforced by the fact borrowing volume only dropped slightly in reaction to the recovery, but cost to borrow jumped a further 20 percent by the end of last week.
Astec suggested that: Combine these statistics with the jump seen in the share price and, if the borrow volume as a proportion of the available shares was increasing rather than decreasing, a short squeeze would definitely be driving the borrowing market for Tesla.
To the east in the Asia Pacific watch maker and manufacturer Citizen Holdings earned borrowing interest after the company’s share price hit a 12-month low of CNY 607 ($93.36) on 1 March, compared to CNY 969 ($149) in April 2015.
Astec data shows that around two-thirds of the company’s loss has come in 2016 and short sellers have accordingly built positions by 20 percent in the same period.
Many short sellers recently cashed in on significant profits from their gamble but a 4 percent price recovery has tempted some to open new positions, with borrow volume up by 51 percent in the past week alone.
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