SunGard's Hot US Stocks: US Steel, GoPro, Fitbit, And More

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  • SunGard's Astec Analytics provides up-to-date, intraday short selling information that gauges investor sentiments.
  • SunGard released a list of some of the "hottest" stocks from a securities lending perspective.
  • Top picks include United States Steel Corporation X, GoPro Inc GPRO, Fitbit Inc FIT, among others.
SunGard's Astec Analytics
provides up-to-date, intraday short selling information that helps users gauge changes in investor sentiments. Here is a roundup of some of the hottest stocks that SunGard flagged from a securities lending perspective.
US Steel: Short Sellers Paying ‘Special Levels Of Fees'
Shares of US Steel has seen a "disintegration" of value from nearly $37 a year ago to the $10 per share mark. SunGard noted that the move down has been "shadowed" by short sellers who began building their positions at the end of 2014. SunGard added that there are more than 35 million shares that are on loan and as such borrowing fees have risen. In fact, short sellers are now paying "special levels of fees."
GoPro: ‘Struggling To Make Headway'
Shares of GoPro have lost nearly 70 percent in value over the last year as the company faces many issues, including poor quarterly results and an ongoing patent suit from Polaroid. As such, SunGard noted that demand to borrow the stock exceeds supply which has pushed borrowing costs higher. SunGard added that GoPro is focusing on turning itself around and "get consumers to clamor for its products" which also happens to be "the same way short sellers are out to grab their shares."
Fitbit: ‘Very High Demand' To Short The Stock
Fitbit, unlike GoPro can claim that its stock is in positive territory over the past 12 months. However, much like GoPro's stock, Fitbit short sellers are showing a "very high demand" to borrow shares despite a "steady supply of good news." SunGard stated that Fitbit's stock remains "very expensive" to borrow and that nearly every share in its database is being borrowed – evidenced by the stock "bouncing along" the 100 percent ceiling since August.
Synchrony: Confidence ‘Not Shared By Everyone'
Shares of
Synchrony Financial
SYF
, a financial services company that offers private label credit cards, have gained 18 percent over the past year. The move higher could be attributed to an improving US economy. However, SunGard pointed out that short interest as indicated by the borrow volumes in the shares has risen "uninterrupted from near zero" 16 months ago to nearly 65 million shares this week. As such, the cost to borrow has also risen "dramatically" and is "well into the special zone of fee levels."
XPO Logistics: Borrowing Levels Have Risen ‘Steeply' Since June
Shares of
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XPO Logistics IncXPO
hit a 52-week high of $50.96 back in May but fell below $22 per share by the end of September. The stock has since recovered roughly $10 per share, but the stock is "coming into the sights" of short sellers as borrowing volumes have "steeply" risen from June by doubling to around 20 million shares on loan. SunGard stated that the recent rebound in the stock has "done little to discourage" short sellers who have now pushed utilization to near 100 percent and "appear willing to pay fees that such demand attracts."
Cheetah Mobile: Institutional Investors Selling
Finally, SunGard argued that institutional investors are "dropping"
Cheetah Mobile Inc (ADR)CMCM
from their holdings. Meanwhile, the stock has seen "aggressive" borrowing levels through the first quarter and utilization hit 100 percent in May. SunGard added that the borrowing volumes dropped by one third last week, potentially due to institutional investors selling out rather than a lack of borrower demand.
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Posted In: Analyst ColorAstec Analyticsshort sellingSunGard
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