Top of hot stocks: Royal Mail, NIO Inc and Don Quijote
17 October 2018 London
Image: Shutterstock
Royal Mail has topped the FIS Astec Analytics hot stocks list for Europe, the Middle East, and Africa (EMEA) last week.
Previously appearing as the top pick in the last week of September, the publicly owned UK-based postal service provider is back this week as a profits warning sends its shares plunging.
The profits warning issued last week confirmed their expectations as the shares dropped from £4.77 on September 28 to close last week at £3.41, a fall of some 29 percent.
FIS found utilisation remains relatively low, but volume is rising steeply as short sellers take additional positions in the expectation that Royal Mail may slip further.
Following Royal Mail in the EMEA region is Logitech International, the Swiss-based computer peripherals manufacturer.
Short interest advanced through September before dropping back again briefly, striking a new two-year low before accelerating more actively again.
Volume grew, albeit, from a low level, some 338 percent as the shares’ advance finally faltered, dropping some 8 percent.
Topping the Americas hot stocks list was NIO, the China-based vehicle manufacturer that is, according to FIS “rapidly becoming known as the ‘Tesla of China.’”
As short sellers rapidly built positions, pushing utilisation up to 69 percent by the middle of last week, shares began to deflate.
FIS said: “Much like Tesla, NIO is likely to endure a volatile time on the US markets, but short sellers are already making their presence felt and may be seeking the same returns they have seen from Tesla.”
At the top of the Asia Pacific hot stock list this week is Don Quijote, the Japan-based discount store providing product leasing to retail and tenant businesses.
Over the past two years, short interest levels in the discount shop group have rarely breached 10 percent, with under 5 percent levels being the more common value.
But FIS stated that last week, Don Quijote experienced a jump in utilisation from under 7 percent to just under 16 percent as volume jumped 161 percent to a new 24-month high.
Previously appearing as the top pick in the last week of September, the publicly owned UK-based postal service provider is back this week as a profits warning sends its shares plunging.
The profits warning issued last week confirmed their expectations as the shares dropped from £4.77 on September 28 to close last week at £3.41, a fall of some 29 percent.
FIS found utilisation remains relatively low, but volume is rising steeply as short sellers take additional positions in the expectation that Royal Mail may slip further.
Following Royal Mail in the EMEA region is Logitech International, the Swiss-based computer peripherals manufacturer.
Short interest advanced through September before dropping back again briefly, striking a new two-year low before accelerating more actively again.
Volume grew, albeit, from a low level, some 338 percent as the shares’ advance finally faltered, dropping some 8 percent.
Topping the Americas hot stocks list was NIO, the China-based vehicle manufacturer that is, according to FIS “rapidly becoming known as the ‘Tesla of China.’”
As short sellers rapidly built positions, pushing utilisation up to 69 percent by the middle of last week, shares began to deflate.
FIS said: “Much like Tesla, NIO is likely to endure a volatile time on the US markets, but short sellers are already making their presence felt and may be seeking the same returns they have seen from Tesla.”
At the top of the Asia Pacific hot stock list this week is Don Quijote, the Japan-based discount store providing product leasing to retail and tenant businesses.
Over the past two years, short interest levels in the discount shop group have rarely breached 10 percent, with under 5 percent levels being the more common value.
But FIS stated that last week, Don Quijote experienced a jump in utilisation from under 7 percent to just under 16 percent as volume jumped 161 percent to a new 24-month high.
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