FIS hot stocks: 21 March
31 March 2016 London
Image: Shutterstock
Technology, manufacturing and energy companies once again earned the most short interest during the week beginning 21 March but they are in danger of becoming too expensive to borrow, according to the FIS Astec Analytics hot stocks list.
Swiss tech company Logitech International, Tesla Motors and Yanzhou Coal Mining were all regional top picks for Astec Analytics in Europe, the Middle East and Africa (EMEA), the Americas and the Asia Pacific, respectively.
For the EMEA, the Swiss computer accessory provider enjoyed a temporary boost in early March from an announcement of new products in development. Its share price dutifully rose from $14.55 six weeks ago to hit a 12-month high of $17.10 on 7 March.
But optimism quickly faded again as borrow volume grew by 25 percent, while its share price re-adjusted back down to settle at $15.90.
Short sellers’ gamble might well be paying off in the EMEA, but in the Americas the almost relentless upward trajectory of Tesla’s share price has been testing their nerve throughout the past month.
From its 12-month low of $143.67 on 10 February, the electronic car manufacturer's share value reached $238.32 by 21 March, within $44 of the 12-month high.
Short sellers may soon see their perseverance payoff, however, as Tesla’s share price finally dipped fractionally by $5 in February to close at $227.75. Whether this is the start of a peak, or even a trough, is yet to be seen.
Astec noted: “With the borrow volume as a proportion of shares available exceeding 92 percent—up more than 1 percent on the week—despite a 0.3 percent drop in borrow volume, borrowing costs are very high and getting higher.”
In the Asia Pacific, China’s Yanzhou Coal Mining has suffered alongside the rest of the global consumable fuel industry in recent months.
Finally, though, the sector has received some good news and there is more than a suggestion that it might have been oversold, according to Astec.
Short sellers have been closing their positions in Yanzhou as the share price rebounds from 12-month lows of below HKD 3 (USD 39 cents).
Borrow volumes were within 10 percent of the 12-month high on 25 February, but have since fallen almost continuously.
Short interest is currently down around 18 percent from its peak, including 10 percent in the last seven days.
Swiss tech company Logitech International, Tesla Motors and Yanzhou Coal Mining were all regional top picks for Astec Analytics in Europe, the Middle East and Africa (EMEA), the Americas and the Asia Pacific, respectively.
For the EMEA, the Swiss computer accessory provider enjoyed a temporary boost in early March from an announcement of new products in development. Its share price dutifully rose from $14.55 six weeks ago to hit a 12-month high of $17.10 on 7 March.
But optimism quickly faded again as borrow volume grew by 25 percent, while its share price re-adjusted back down to settle at $15.90.
Short sellers’ gamble might well be paying off in the EMEA, but in the Americas the almost relentless upward trajectory of Tesla’s share price has been testing their nerve throughout the past month.
From its 12-month low of $143.67 on 10 February, the electronic car manufacturer's share value reached $238.32 by 21 March, within $44 of the 12-month high.
Short sellers may soon see their perseverance payoff, however, as Tesla’s share price finally dipped fractionally by $5 in February to close at $227.75. Whether this is the start of a peak, or even a trough, is yet to be seen.
Astec noted: “With the borrow volume as a proportion of shares available exceeding 92 percent—up more than 1 percent on the week—despite a 0.3 percent drop in borrow volume, borrowing costs are very high and getting higher.”
In the Asia Pacific, China’s Yanzhou Coal Mining has suffered alongside the rest of the global consumable fuel industry in recent months.
Finally, though, the sector has received some good news and there is more than a suggestion that it might have been oversold, according to Astec.
Short sellers have been closing their positions in Yanzhou as the share price rebounds from 12-month lows of below HKD 3 (USD 39 cents).
Borrow volumes were within 10 percent of the 12-month high on 25 February, but have since fallen almost continuously.
Short interest is currently down around 18 percent from its peak, including 10 percent in the last seven days.
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