SunGard’s hot stocks: 5 May
08 May 2014 London
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Only Twitter and Anhui Conch managed to hold their place at the top of SunGard’s Astec Analytics latest hot stocks list, with a number of new entrants making waves.
German car manufacturer BMW AG (BMW.F) is SunGard’s top Europe, Middle East and Africa (EMEA) pick for the week beginning 5 May 2014, after its shares experienced a volatile and mostly negative period, despite the company saying it had seen sales edge higher in April.
The true market focus was the week's earnings data, as numbers came in better than expected. Data from SunGard suggests that, while the stock was losing ground in April, short sellers may have been building positions. The number of BMW shares borrowed is up 43 percent over the previous four weeks.
CNH Industrial NV (CNHI.MI) has also been highlighted by SunGard for the EMEA region after it announced it has entered into a new technology licensing and component supply agreement with Sumitomo Construction Machinery.
The agreement will see CNH Industrial begin to manufacture Sumitomo-designed crawler excavators starting in 2016.
Despite this, the company's shares saw a somewhat mixed week, while on the borrowing front SunGard data suggests short selling may have begun to edge higher. The number of shares borrowed climbed almost 10 percent in the week beginning 5 May.
General Electric was SunGard’s top North American pick for the same week after the board of French company Alstom officially accepted a binding cash offer for the sale of its energy business.
The deal is expected to go through for $13.5 billion despite objections from the French government. Concerns around this opposition to the deal have now been justified. The French government sent an official letter to General Electric CEO requesting a different and more equitable deal.
From a short selling perspective, data from SunGard suggests General Electric’s share price has been gaining ground and since early March borrowing has been declining steadily, with volume of its stock being borrowed now 52 percent lower than 1 March 2014.
Social media firm Twitter (TWTR) has retained its place on SunGard’s list for yet another week after it recently reported disappointing earnings numbers.
This caused the shares to gap-down after the overnight announcement and has since seen the stock drop by 17 percent.
Data from SunGard shows both borrowing and demand to borrow have been on the rise despite the falling share price with the number of shares borrowed climbing 10 percent.
In the same week, the cost of Twitter’s borrowing quadrupled—both numbers are currently the highest the company has seen since it was listed in November 2013.
Australian iron ore developer Aquila Resources (AQA.AX) is SunGard’s top pick for the Asia Pacific region, after China's Baosteel teamed up with Australia's Aurizon Holdings to launch a AUD $1.14 billion takeover bid for the company.
Although Aquila's shares ended the week beginning 5 May in the red, the news brought about a surge, with the stock opening about 37 percent higher than it closed on at the end of the previous week.
On the borrowing front, data from SunGard suggests short selling may have been building since the first weeks of April, when the number of shares borrowed climbed 19 percent.
Chinese cement company Anhui Conch Cement Company (0914.HK) has also been selected by SunGard as a hot stock for the Asia Pacific region.
The company’s share price has managed to slowly claw back some of the ground it lost in the immediate aftermath of poor results in the previous week and SunGard’s data shows borrowing activity has continued to increase at a steady pace, hinting that short sellers may still be betting on further losses for the stock despite the recent fall.
Since 16 April 2014 the number of Anhui shares being borrowed has climbed by 9 percent.
German car manufacturer BMW AG (BMW.F) is SunGard’s top Europe, Middle East and Africa (EMEA) pick for the week beginning 5 May 2014, after its shares experienced a volatile and mostly negative period, despite the company saying it had seen sales edge higher in April.
The true market focus was the week's earnings data, as numbers came in better than expected. Data from SunGard suggests that, while the stock was losing ground in April, short sellers may have been building positions. The number of BMW shares borrowed is up 43 percent over the previous four weeks.
CNH Industrial NV (CNHI.MI) has also been highlighted by SunGard for the EMEA region after it announced it has entered into a new technology licensing and component supply agreement with Sumitomo Construction Machinery.
The agreement will see CNH Industrial begin to manufacture Sumitomo-designed crawler excavators starting in 2016.
Despite this, the company's shares saw a somewhat mixed week, while on the borrowing front SunGard data suggests short selling may have begun to edge higher. The number of shares borrowed climbed almost 10 percent in the week beginning 5 May.
General Electric was SunGard’s top North American pick for the same week after the board of French company Alstom officially accepted a binding cash offer for the sale of its energy business.
The deal is expected to go through for $13.5 billion despite objections from the French government. Concerns around this opposition to the deal have now been justified. The French government sent an official letter to General Electric CEO requesting a different and more equitable deal.
From a short selling perspective, data from SunGard suggests General Electric’s share price has been gaining ground and since early March borrowing has been declining steadily, with volume of its stock being borrowed now 52 percent lower than 1 March 2014.
Social media firm Twitter (TWTR) has retained its place on SunGard’s list for yet another week after it recently reported disappointing earnings numbers.
This caused the shares to gap-down after the overnight announcement and has since seen the stock drop by 17 percent.
Data from SunGard shows both borrowing and demand to borrow have been on the rise despite the falling share price with the number of shares borrowed climbing 10 percent.
In the same week, the cost of Twitter’s borrowing quadrupled—both numbers are currently the highest the company has seen since it was listed in November 2013.
Australian iron ore developer Aquila Resources (AQA.AX) is SunGard’s top pick for the Asia Pacific region, after China's Baosteel teamed up with Australia's Aurizon Holdings to launch a AUD $1.14 billion takeover bid for the company.
Although Aquila's shares ended the week beginning 5 May in the red, the news brought about a surge, with the stock opening about 37 percent higher than it closed on at the end of the previous week.
On the borrowing front, data from SunGard suggests short selling may have been building since the first weeks of April, when the number of shares borrowed climbed 19 percent.
Chinese cement company Anhui Conch Cement Company (0914.HK) has also been selected by SunGard as a hot stock for the Asia Pacific region.
The company’s share price has managed to slowly claw back some of the ground it lost in the immediate aftermath of poor results in the previous week and SunGard’s data shows borrowing activity has continued to increase at a steady pace, hinting that short sellers may still be betting on further losses for the stock despite the recent fall.
Since 16 April 2014 the number of Anhui shares being borrowed has climbed by 9 percent.
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