Top of hot stocks: Vallourec, MBTN and GTT Communications
05 December 2018 London
Image: Shutterstock
Jumping from the number three slot last week Vallourec, the France-based steel tube manufacturer, saw short sellers rewarded as shares slumped 56 percent, closing last week at €1.70.
This marked a 12-month low and the end of a slide, which began at the start of October when the shares were trading around €5.10.
The shares regained some of their value last week, adding 23 percent to close the week at €2.09, but this did not put off the short sellers.
Of this, FIS said: “Short interest, which has been rising steeply since late September, grew by a further 4 percent by volume, pushing utilisation upward to just under 95 percent, suggesting that short sellers think this recovery may not last.”
Following Vallourec was Meyer Burger Technology AG, the Switzerland-based semiconductor manufacturer which specialises in the solar power industry.
Short interest volume fell by 2 percent during the week but utilisation increased by 2 percent, rising from 92 percent to just over 94 percent.
FIS noted that this divergence suggests a contraction in supply, which is often linked to long investors selling out of their positions.
Topping the Americas hot stock list was the US-based cloud networking provider, GTT Communications.
Closing last week at $33.66, the shares have fallen a net 27 percent, having hit a 12-month low of $31.03 last month. Short sellers added some 15 percent by volume to the peak, and a net 9 percent to last week’s close.
Meanwhile, topping the Asia-Pacific hot stocks was Country Garden Holdings Company, the Hong-Kong-based property development and management company, which operates in mainland China.
The shares closed last week at HK$9.62, but the short sellers’ interest appeared to have been boosted as the shares push toward HK$10. FIS noted that they may view this as a ceiling or resistance point growing their exposure should the price fall back.
This marked a 12-month low and the end of a slide, which began at the start of October when the shares were trading around €5.10.
The shares regained some of their value last week, adding 23 percent to close the week at €2.09, but this did not put off the short sellers.
Of this, FIS said: “Short interest, which has been rising steeply since late September, grew by a further 4 percent by volume, pushing utilisation upward to just under 95 percent, suggesting that short sellers think this recovery may not last.”
Following Vallourec was Meyer Burger Technology AG, the Switzerland-based semiconductor manufacturer which specialises in the solar power industry.
Short interest volume fell by 2 percent during the week but utilisation increased by 2 percent, rising from 92 percent to just over 94 percent.
FIS noted that this divergence suggests a contraction in supply, which is often linked to long investors selling out of their positions.
Topping the Americas hot stock list was the US-based cloud networking provider, GTT Communications.
Closing last week at $33.66, the shares have fallen a net 27 percent, having hit a 12-month low of $31.03 last month. Short sellers added some 15 percent by volume to the peak, and a net 9 percent to last week’s close.
Meanwhile, topping the Asia-Pacific hot stocks was Country Garden Holdings Company, the Hong-Kong-based property development and management company, which operates in mainland China.
The shares closed last week at HK$9.62, but the short sellers’ interest appeared to have been boosted as the shares push toward HK$10. FIS noted that they may view this as a ceiling or resistance point growing their exposure should the price fall back.
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