FIS hot stocks: 15 Feb
26 February 2016 London
Image: Shutterstock
Technology, medical and energy were some of the most shorted sectors in the past week, according to FIS Astec Analytics.
For Europe, the Middle East and Africa, Sweden biometric technology provider Fingerprint Cards was the most shorted across the region.
The company has seen a meteoric rise in share price of 1,100 percent in the past 12 months, which has naturally drawn the attention of short sellers, who, quite understandably, see this growth as unsustainable.
The number of shares borrowed as a proportion of those available edged up to 97.4 percent from 93.5 percent over the past week, in preparation for the inevitable share price recalibration.
However, in defiance of short sellers’ pessimism, Fingerprint’s shares gained another SEK 100 ($11.7) in value over the past week, closing at SEK 478 ($56.2).
In the Americas, biopharmaceutical company Rockwell Medical had to swallow bitter medicine after poor test results on its renal disease treatment had a dramatic impact on stock prices.
According to Astec, Rockwell is currently trading at less than half the 12-month peak of $18.69, seen in July.
The proportion of available shares being borrowed broke through the 70 percent mark around July and have rarely dipped beneath this level since.
In the past week, this level was in excess of 85 percent, and the costs to borrow the stock also rocketed as a sudden 40 percent price boost created a potential short squeeze.
Moving onto Asia Pacific, Japanese hydrogen energy supplier Iwatani Corporation was most shorted after a significant obstacle to the alternative fuel’s wider use was potentially removed.
The volatile energy source has long been hampered by a lack of safe distribution methods, but that may now be solved in Japan as a joint venture with Seven-Eleven Japan will allow the nationwide chain of convenience stores to become fuel stations for Iwatani.
Share price rose 10 percent following the deal’s announcement and short interest followed suit.
Overall short interest has almost halved since the 12-month peak in October, but the share price remains more than 10 percent below average October levels and 25 percent below the 12-month peak.
For Europe, the Middle East and Africa, Sweden biometric technology provider Fingerprint Cards was the most shorted across the region.
The company has seen a meteoric rise in share price of 1,100 percent in the past 12 months, which has naturally drawn the attention of short sellers, who, quite understandably, see this growth as unsustainable.
The number of shares borrowed as a proportion of those available edged up to 97.4 percent from 93.5 percent over the past week, in preparation for the inevitable share price recalibration.
However, in defiance of short sellers’ pessimism, Fingerprint’s shares gained another SEK 100 ($11.7) in value over the past week, closing at SEK 478 ($56.2).
In the Americas, biopharmaceutical company Rockwell Medical had to swallow bitter medicine after poor test results on its renal disease treatment had a dramatic impact on stock prices.
According to Astec, Rockwell is currently trading at less than half the 12-month peak of $18.69, seen in July.
The proportion of available shares being borrowed broke through the 70 percent mark around July and have rarely dipped beneath this level since.
In the past week, this level was in excess of 85 percent, and the costs to borrow the stock also rocketed as a sudden 40 percent price boost created a potential short squeeze.
Moving onto Asia Pacific, Japanese hydrogen energy supplier Iwatani Corporation was most shorted after a significant obstacle to the alternative fuel’s wider use was potentially removed.
The volatile energy source has long been hampered by a lack of safe distribution methods, but that may now be solved in Japan as a joint venture with Seven-Eleven Japan will allow the nationwide chain of convenience stores to become fuel stations for Iwatani.
Share price rose 10 percent following the deal’s announcement and short interest followed suit.
Overall short interest has almost halved since the 12-month peak in October, but the share price remains more than 10 percent below average October levels and 25 percent below the 12-month peak.
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