The week's hottest stocks
30 April 2014 London
Image: Shutterstock
With its latest list of the world’s hottest stocks, SunGard’s Astec Analytics highlights a mixed bag, including insurance technology, telecoms and a cement company.
Insurance technology company Quindell Portfolio (QPP.L) is SunGard’s top Europe, Middle East and Africa (EMEA) pick for the week beginning 28 April 2014, after its share price plummeted more than 40 percent following a research report by Gotham City Research that scrutinised the company’s profits.
Despite a detailed rebuttal from Quindell, its stock currently trades at about half the value it did on 21 April 2014.
Interestingly on the short selling front, the lending figures from SunGard suggest this latest share drop has not increased the pace of borrowing, nor brought about any profit-taking from those holding positions.
In second place for the EMEA region is Italian Bank, Banca Monte dei Paschi di Siena (BMPS.MI), whose share price now stands 12 percent higher following news it would be expanding its share sale—the benefit of the additional funds outweighing the additional supply of stock in the cash market.
On the securities lending front, however, borrowing has continued to climb hinting that those on the short side may not be quite so optimistic, with loan volumes almost tripling during the month of April.
SunGard stated that UK telecoms company Vodafone Group (VOD.L) has seen renewed attention, mainly on the back of news that it would be increasing its holdings in Vodafone India by offering $1.5 billion for Piramal Enterprises’s 11 percent stake in the company.
Portugal Telecom SGPS (PTC.LIS), a first time entrant in SunGard’s list, was also picked out, as demand to borrow the stocks has been steadily climbing.
In North America, tech company Motorola Solutions (MSI) is top of the pile for the week beginning 28 April 2014, after it agreed to a patent licensing deal with Microsoft—which grants worldwide coverage for Motorola devices running Android or Chrome operating systems.
Interest also came following a recent deal that saw Zebra Technologies agree to buy Motorola's scanner business for $3.5 billion.
Meanwhile, on the borrowing front, data from SunGard suggested that short selling has been on the increase in MSI shares over the previous two weeks, even as the share price has been losing ground.
The ubiquitous social networking company Twitter (TWTR) is also still a solid investment, according to SunGard, as industry attention turns to its upcoming earnings numbers.
SunGard data suggested that short selling has been on the increase in the run-up to the latest numbers, even as the share price lost ground.
SunGard commented: “Since mid-April, the number of Twitter shares being borrowed has climbed 18 percent, although last week did send a somewhat mixed signal as demand to borrow seemed to slacken off, with the cost of borrowing almost half its [21 April] peak.”
Search engine Google (GOOG) has also seen renewed interest of late, amid several news stories, including its purchase of a number of communication technology patents from Chinese company Foxconn.
Chinese internet behemoth Tencent Holdings (0700.HK), the fourth largest listed internet company in the world, is SunGard’s top pick for the Asia Pacific region, after it undertook its largest dollar-bond sale on record, raising a total of $2.5 billion in the US via three-year and five-year notes.
The sale came as news emerged that Hollywood's biggest movie studios are working with the company to allow internet streaming of their movies just two weeks after the theatrical release, in hopes that it will help to curb video piracy in China.
Meanwhile, on the securities lending front, data from SunGard showed borrowing of Tencent stock fell 16 percent in the week, hinting that short sellers may be pulling back from the positions built up earlier in April.
China’s Anhui Conch Cement Company (0914.HK) has also been singled out by SunGard as a hot stock, after its Q1 earnings numbers helped bring about a 10 percent fall in its share price, with concerns over growth and building demand in the country outweighing the fact it said profit more than doubled to 2.5 billion yuan.
“On the borrowing front, our data suggests this fall in share price was met by similar, if somewhat more muted, concerns from the short side—with the number of Anhui shares being borrowed climbing 7 percent since the [week beginning 21 April]”, commented SunGard.
Japanese consumer loan company, Acom Company (8572), is another first-time entrant in SunGard’s hot stocks list, while lender Aiful (8515), another Japanese company is also seeing interest—mainly on the back of suggestions industry legislation will be eased.
Insurance technology company Quindell Portfolio (QPP.L) is SunGard’s top Europe, Middle East and Africa (EMEA) pick for the week beginning 28 April 2014, after its share price plummeted more than 40 percent following a research report by Gotham City Research that scrutinised the company’s profits.
Despite a detailed rebuttal from Quindell, its stock currently trades at about half the value it did on 21 April 2014.
Interestingly on the short selling front, the lending figures from SunGard suggest this latest share drop has not increased the pace of borrowing, nor brought about any profit-taking from those holding positions.
In second place for the EMEA region is Italian Bank, Banca Monte dei Paschi di Siena (BMPS.MI), whose share price now stands 12 percent higher following news it would be expanding its share sale—the benefit of the additional funds outweighing the additional supply of stock in the cash market.
On the securities lending front, however, borrowing has continued to climb hinting that those on the short side may not be quite so optimistic, with loan volumes almost tripling during the month of April.
SunGard stated that UK telecoms company Vodafone Group (VOD.L) has seen renewed attention, mainly on the back of news that it would be increasing its holdings in Vodafone India by offering $1.5 billion for Piramal Enterprises’s 11 percent stake in the company.
Portugal Telecom SGPS (PTC.LIS), a first time entrant in SunGard’s list, was also picked out, as demand to borrow the stocks has been steadily climbing.
In North America, tech company Motorola Solutions (MSI) is top of the pile for the week beginning 28 April 2014, after it agreed to a patent licensing deal with Microsoft—which grants worldwide coverage for Motorola devices running Android or Chrome operating systems.
Interest also came following a recent deal that saw Zebra Technologies agree to buy Motorola's scanner business for $3.5 billion.
Meanwhile, on the borrowing front, data from SunGard suggested that short selling has been on the increase in MSI shares over the previous two weeks, even as the share price has been losing ground.
The ubiquitous social networking company Twitter (TWTR) is also still a solid investment, according to SunGard, as industry attention turns to its upcoming earnings numbers.
SunGard data suggested that short selling has been on the increase in the run-up to the latest numbers, even as the share price lost ground.
SunGard commented: “Since mid-April, the number of Twitter shares being borrowed has climbed 18 percent, although last week did send a somewhat mixed signal as demand to borrow seemed to slacken off, with the cost of borrowing almost half its [21 April] peak.”
Search engine Google (GOOG) has also seen renewed interest of late, amid several news stories, including its purchase of a number of communication technology patents from Chinese company Foxconn.
Chinese internet behemoth Tencent Holdings (0700.HK), the fourth largest listed internet company in the world, is SunGard’s top pick for the Asia Pacific region, after it undertook its largest dollar-bond sale on record, raising a total of $2.5 billion in the US via three-year and five-year notes.
The sale came as news emerged that Hollywood's biggest movie studios are working with the company to allow internet streaming of their movies just two weeks after the theatrical release, in hopes that it will help to curb video piracy in China.
Meanwhile, on the securities lending front, data from SunGard showed borrowing of Tencent stock fell 16 percent in the week, hinting that short sellers may be pulling back from the positions built up earlier in April.
China’s Anhui Conch Cement Company (0914.HK) has also been singled out by SunGard as a hot stock, after its Q1 earnings numbers helped bring about a 10 percent fall in its share price, with concerns over growth and building demand in the country outweighing the fact it said profit more than doubled to 2.5 billion yuan.
“On the borrowing front, our data suggests this fall in share price was met by similar, if somewhat more muted, concerns from the short side—with the number of Anhui shares being borrowed climbing 7 percent since the [week beginning 21 April]”, commented SunGard.
Japanese consumer loan company, Acom Company (8572), is another first-time entrant in SunGard’s hot stocks list, while lender Aiful (8515), another Japanese company is also seeing interest—mainly on the back of suggestions industry legislation will be eased.
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