FIS hot stocks: 14 March
24 March 2016 London
Image: Shutterstock
Short sellers took aim at all things tech last week as a digital security provider, social media giant and a renewable battery developer took the top spots in the FIS Astec Analytics hot stocks list for the week starting 14 March.
For Europe, the Middle East and Africa, Swedish biometric technology provider Fingerprint Cards maintained the most shorting interest across the region, despite share price rocketing up by almost 900 percent over the past 12 months.
Even at these hugely unfavourable prices Astec data shows that 4.5 million shares are currently being sold short at an accumulative unrealised loss of around $37.6 million for short sellers.
However, there might be light at the end of the tunnel for short sellers as the company’s share price has already dropped 25 percent so far this year — just another 875 percent to go.
In the Americas it was the turn of the social media juggernaut Twitter to feel the full attention of the shorting market.
The company’s share price was down by just over 65 percent last week compared with 12 months ago and borrowing volume grew by 12.5 percent at the same time.
Twitter’s perceived struggle to effectively monetise its vast user base and produce further innovations to capture imaginations of investors was highlighted as the key reason behind its appearance on the hot stocks list.
In the Asia Pacific BYD retained its poll position as high borrow volume push costs ever higher.
The number of shares borrowed actually fell, albeit by a very small amount, over the past week, but measured as a proportion of the supply available it actually grew by almost 2 percent, according to Astec.
This indicates that supply is decreasing, suggesting in turn that institutional shareholders are reducing their positions.
Chinese manufacturer BYD Company is once again the top pick for Asia as borrow volume continues to stress supply and push borrowing costs even higher over the last week.
The number of shares borrowed actually fell, albeit by a very small amount, over the past week, but measured as a proportion of the supply available it actually grew by almost 2 percent.
This indicates that supply is decreasing, suggesting in turn that institutional shareholders are reducing their positions.
This might be driven by rise in share price which saw the company pull itself up to close 13 percent up over the past 12 months.
For Europe, the Middle East and Africa, Swedish biometric technology provider Fingerprint Cards maintained the most shorting interest across the region, despite share price rocketing up by almost 900 percent over the past 12 months.
Even at these hugely unfavourable prices Astec data shows that 4.5 million shares are currently being sold short at an accumulative unrealised loss of around $37.6 million for short sellers.
However, there might be light at the end of the tunnel for short sellers as the company’s share price has already dropped 25 percent so far this year — just another 875 percent to go.
In the Americas it was the turn of the social media juggernaut Twitter to feel the full attention of the shorting market.
The company’s share price was down by just over 65 percent last week compared with 12 months ago and borrowing volume grew by 12.5 percent at the same time.
Twitter’s perceived struggle to effectively monetise its vast user base and produce further innovations to capture imaginations of investors was highlighted as the key reason behind its appearance on the hot stocks list.
In the Asia Pacific BYD retained its poll position as high borrow volume push costs ever higher.
The number of shares borrowed actually fell, albeit by a very small amount, over the past week, but measured as a proportion of the supply available it actually grew by almost 2 percent, according to Astec.
This indicates that supply is decreasing, suggesting in turn that institutional shareholders are reducing their positions.
Chinese manufacturer BYD Company is once again the top pick for Asia as borrow volume continues to stress supply and push borrowing costs even higher over the last week.
The number of shares borrowed actually fell, albeit by a very small amount, over the past week, but measured as a proportion of the supply available it actually grew by almost 2 percent.
This indicates that supply is decreasing, suggesting in turn that institutional shareholders are reducing their positions.
This might be driven by rise in share price which saw the company pull itself up to close 13 percent up over the past 12 months.
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