FIS hot stocks: 28 March
07 April 2016 London
Image: Shutterstock
Energy providers came under the spotlight last week, taking the top spot in all three regions for the 28 March FIS Astec Analytics hot stocks list.
Renewable energy provider SMA Solar Technology has so far resisted the downward market pressure on renewable energy, even thriving where its competitors have suffered, but high share utilisation means it still topped last week’s list for Europe, the Middle East and Africa.
Borrow volumes in turn have fallen 56 percent from levels seen in Q1 2015, according to Astec’s data. However, supply has fallen at a similar rate, meaning the utilisation rate remains at over 80 percent, with the cost to borrow equally high.
The German company’s shares are up 275 percent from 12 months ago, currently trading at €45, with some analysts predicting further growth, according to Astec.
In the wider context of the company’s history, however, the share price is still €10 under its 2008 issue price, and some €50 below its €95 peak in 2010. This may explain why short sellers are betting that the company’s ability to buck the trend may not last forever.
In the Americas, SunEdison, another renewable energy company, is firmly in the sights of short sellers, with its share price dropping 98 percent over the past 12 months.
The company’s share price peaked at $32 in June 2015 and has fallen steadily ever since.
Astec notes that borrow fees are now showing in triple figures, making this one of the most expensive, if not the most expensive, rated borrow on the market.
Given that the shares are now worth less than USD 50 cents, annual fees in excess of 100 percent are more manageable, but the remaining upside is, of course, highly restricted.
Moving away from renewables, but still in the energy sector, hot stocks favourite Yanzhou Coal Mining held on to the top spot for the Asia Pacific
Astec reiterated that the company is slowly regaining ground and there has been a suggestion it might have been oversold.
Astec’s data shows that, following a modest recovery, some short sellers have since closed their positions and banked healthy profits, but many more seem happy to leave their gains unrealised for a while longer.
Renewable energy provider SMA Solar Technology has so far resisted the downward market pressure on renewable energy, even thriving where its competitors have suffered, but high share utilisation means it still topped last week’s list for Europe, the Middle East and Africa.
Borrow volumes in turn have fallen 56 percent from levels seen in Q1 2015, according to Astec’s data. However, supply has fallen at a similar rate, meaning the utilisation rate remains at over 80 percent, with the cost to borrow equally high.
The German company’s shares are up 275 percent from 12 months ago, currently trading at €45, with some analysts predicting further growth, according to Astec.
In the wider context of the company’s history, however, the share price is still €10 under its 2008 issue price, and some €50 below its €95 peak in 2010. This may explain why short sellers are betting that the company’s ability to buck the trend may not last forever.
In the Americas, SunEdison, another renewable energy company, is firmly in the sights of short sellers, with its share price dropping 98 percent over the past 12 months.
The company’s share price peaked at $32 in June 2015 and has fallen steadily ever since.
Astec notes that borrow fees are now showing in triple figures, making this one of the most expensive, if not the most expensive, rated borrow on the market.
Given that the shares are now worth less than USD 50 cents, annual fees in excess of 100 percent are more manageable, but the remaining upside is, of course, highly restricted.
Moving away from renewables, but still in the energy sector, hot stocks favourite Yanzhou Coal Mining held on to the top spot for the Asia Pacific
Astec reiterated that the company is slowly regaining ground and there has been a suggestion it might have been oversold.
Astec’s data shows that, following a modest recovery, some short sellers have since closed their positions and banked healthy profits, but many more seem happy to leave their gains unrealised for a while longer.
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