Top of hot stocks: Funding Circle, B&G Foods and China Literature
19 December 2018 London
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Image: Shutterstock
The UK-based capitalised lending firm Funding Circle topped the FIS Astec Analytics hot stocks list last week for Europe, the Middle East and Africa.
According to FIS, short sellers built their positions quickly, advancing from zero to 66 percent utilisation in the few days following the initial public offering (IPO).
Short interest levels continued to advance as new shares became available, but utilisation remained “relatively static”, closing the week at 62 percent.
Funding Circle was followed by France-based distributor of foods and sports equipment, Rallye.
The firm saw an increased net 4 percent in the last fortnight, with volume reaching a new 12-month high, despite utilisation dropping by just under 1 percent over the same period.
FIS explained that the divergence in rates indicates a small rise in market availability, which may have been attracted by the high fees borrowers are willing to pay but suggested that it was more likely as a result of some buying by those seeing the depressed shares as a buying opportunity.
Topping the Americas hot stock list was the US-based manufacturer, seller and distributor of frozen and shelf foods, B&G Foods.
Closing last week at $30.97, the shares have dropped by an approximate net of $5 over the last 12 months as they fluctuated between $22 and $36.80.
The “slow decline” since Q2 was somewhat remedied by a 24 percent increase in short interest volume this month, but FIS predicts a “negative outlook” for the company based on the jump in short interest activity.
Tilray, the Canada-based provider of cannabis products to the pharmaceutical industry, also featured on the Americas hot stocks.
According to FIS, short sellers have continued to add their positions, as Tilray remains overvalued.
Short interest volume increased by just over 10 percent in the last week, and 17 percent since the end of November.
December has seen the shares fall by 27 percent, closing last week at $75.13, the lowest level since August, with FIS suggesting that this is the portent for what “short sellers have been waiting for”.
China Literature, the digital publishing division of investment firm Tencent Holdings, topped the Asia Pacific hot stock list.
The shares closed last week at HK$38.80—since its last appearance on the hot stocks list in August, short sellers have contributed around 88 percent to its outstanding positions.
FIS predicted a further fall in share price “well below” the HK$55 initial public offering price; this expectation is based on the availability of almost 79 percent of the shares with short sellers.
Following on from China Literature was Takeda Pharmaceuticals Company, retaining its number one slot.
The Japan-based firm saw short interest volume continue, moving up 5.5 percent by midweek, before tumbling back to close the week at a net 4.5 percent.
According to FIS, utilisation is advancing faster than volume, supply is becoming scarcer, which advances borrowing costs. It’s hot stocks also showed that for Takeda, the borrowing costs increase some 141 percent over the last week, testing the resolve of short sellers.
According to FIS, short sellers built their positions quickly, advancing from zero to 66 percent utilisation in the few days following the initial public offering (IPO).
Short interest levels continued to advance as new shares became available, but utilisation remained “relatively static”, closing the week at 62 percent.
Funding Circle was followed by France-based distributor of foods and sports equipment, Rallye.
The firm saw an increased net 4 percent in the last fortnight, with volume reaching a new 12-month high, despite utilisation dropping by just under 1 percent over the same period.
FIS explained that the divergence in rates indicates a small rise in market availability, which may have been attracted by the high fees borrowers are willing to pay but suggested that it was more likely as a result of some buying by those seeing the depressed shares as a buying opportunity.
Topping the Americas hot stock list was the US-based manufacturer, seller and distributor of frozen and shelf foods, B&G Foods.
Closing last week at $30.97, the shares have dropped by an approximate net of $5 over the last 12 months as they fluctuated between $22 and $36.80.
The “slow decline” since Q2 was somewhat remedied by a 24 percent increase in short interest volume this month, but FIS predicts a “negative outlook” for the company based on the jump in short interest activity.
Tilray, the Canada-based provider of cannabis products to the pharmaceutical industry, also featured on the Americas hot stocks.
According to FIS, short sellers have continued to add their positions, as Tilray remains overvalued.
Short interest volume increased by just over 10 percent in the last week, and 17 percent since the end of November.
December has seen the shares fall by 27 percent, closing last week at $75.13, the lowest level since August, with FIS suggesting that this is the portent for what “short sellers have been waiting for”.
China Literature, the digital publishing division of investment firm Tencent Holdings, topped the Asia Pacific hot stock list.
The shares closed last week at HK$38.80—since its last appearance on the hot stocks list in August, short sellers have contributed around 88 percent to its outstanding positions.
FIS predicted a further fall in share price “well below” the HK$55 initial public offering price; this expectation is based on the availability of almost 79 percent of the shares with short sellers.
Following on from China Literature was Takeda Pharmaceuticals Company, retaining its number one slot.
The Japan-based firm saw short interest volume continue, moving up 5.5 percent by midweek, before tumbling back to close the week at a net 4.5 percent.
According to FIS, utilisation is advancing faster than volume, supply is becoming scarcer, which advances borrowing costs. It’s hot stocks also showed that for Takeda, the borrowing costs increase some 141 percent over the last week, testing the resolve of short sellers.
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