Deja vu for energy short sellers
13 January 2017 London
Image: Shutterstock
The energy and manufacturing sectors recaptured short sellers’ imaginations last week in a move that echoes the oil rout of Q1 2016, which provided rich pickings for the bears.
Belgian oil transporter Euronav came top of the Europe, Middle East and Africa portion of the FIS Astec Analytics hot stocks list for the week beginning 2 January.
The firm garnered a loyal following of short sellers in 2016 through its controversial expansion strategy, which, as FIS analysts noted, has “cost Euronav dear”.
Its share price fell from €11.87 in January last year to just €6.40 in early December, representing a 46 percent drop.
Many short sellers who had closed their positions and banked healthy profits in December began circling back round for more as the strengthening oil market allowed Euronav’s share price to recover some lost ground to close last week at €7.88. In response, short interest has ballooned by 140 percent.
In the Americas, Crane Co, an industry machinery producer, has seen short interest double in December in anticipation of poor Q4 earnings results to be released later this month.
The manufacturer's share price increased 65 percent throughout 2016, but opened this year with a 5 percent stumble that saw it close the week at $73.28.
In the Asia Pacific, green energy powered vehicle manufacturer BYD came out on top for the region.
The firm’s share price appeared to reach its zenith in September, peaking at around HK $56 (US $7.22 ), just shy of a five-year high of HK $60 (US $7.74).
According to FIS Astec Analytics, short sellers were quick on the draw and began to their build positions in the same month. Shorting interest has since increased by 30 percent to now account for 85 percent of the available shares.
Belgian oil transporter Euronav came top of the Europe, Middle East and Africa portion of the FIS Astec Analytics hot stocks list for the week beginning 2 January.
The firm garnered a loyal following of short sellers in 2016 through its controversial expansion strategy, which, as FIS analysts noted, has “cost Euronav dear”.
Its share price fell from €11.87 in January last year to just €6.40 in early December, representing a 46 percent drop.
Many short sellers who had closed their positions and banked healthy profits in December began circling back round for more as the strengthening oil market allowed Euronav’s share price to recover some lost ground to close last week at €7.88. In response, short interest has ballooned by 140 percent.
In the Americas, Crane Co, an industry machinery producer, has seen short interest double in December in anticipation of poor Q4 earnings results to be released later this month.
The manufacturer's share price increased 65 percent throughout 2016, but opened this year with a 5 percent stumble that saw it close the week at $73.28.
In the Asia Pacific, green energy powered vehicle manufacturer BYD came out on top for the region.
The firm’s share price appeared to reach its zenith in September, peaking at around HK $56 (US $7.22 ), just shy of a five-year high of HK $60 (US $7.74).
According to FIS Astec Analytics, short sellers were quick on the draw and began to their build positions in the same month. Shorting interest has since increased by 30 percent to now account for 85 percent of the available shares.
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