A Look At Short-Sellers' Latest Picks

SunGard's Astec Analytics provides intraday short-selling market data via securities lending analytics. In a recent note sent to customers, the firm shared a “roundup of some of the hottest stocks from a securities lending perspective.”

Below is a look at the top stocks by region (from a security lending perspective), according to SunGard's Karl Loomes.

EMEA Hot Stocks

Astec Analytics’ top pick in the Europe, Middle East and Africa region is Thorntons PLC THTPF, a micro-cap, United Kingdom-based, multi-channel confectionery retailer. The selection was based on the £112 million takeover bid that Italian chocolatier Ferrero made for the company, which triggered a surge of more than 40 percent in its share price on Monday.

On the borrowing front, the firm’s data suggests “short sellers have actually been growing more optimist for Thorntons since the beginning of June, in which time the number of shares being borrowed – the prerequisite for short selling them – has fallen 11 percent, with Friday's session alone seeing more than a 6 percent drop.”

Five more highly-lent stocks for the EMEA region are:

  • 1. CNH Industrial NV CNHI
  • 2. Vodafone Group Plc (ADR) VOD
  • 3. MEYER BURGER TECHGY MYBUF
  • 4. BELGACOM SA UNSP ADR BGAOY
  • 5. Siemens AG (ADR) SIEGY

  • 1. CNH Industrial NV CNHI
  • 2. Vodafone Group Plc (ADR) VOD
  • 3. MEYER BURGER TECHGY MYBUF
  • 4. BELGACOM SA UNSP ADR BGAOY
  • 5. Siemens AG (ADR) SIEGY

The Americas

In the Americas, Astec Analytics selected Apple Inc. AAPL as its stock of choice from a security lending perspective. As many might have guessed, the pick is related to the launch of the company’s music streaming service and the Taylor Swift “scandal.”

Related Link: Twitter Roundup: Did Taylor Swift Beat Apple By Herself?

“June has generally seen Apple shares sliding lower in the cash market, though Astec's figures suggest this has also been bringing with it some short covering – borrowing volumes having fallen 8 percent last week,” the report expounded.

Completing the top six, in terms of short-selling activity, are:

  • 1. MannKind Corporation MNKD
  • 2. Sears Holdings Corp SHLD
  • 3. Ambarella Inc AMBA
  • 4. 3D Systems Corporation DDD
  • 5. Shake Shack Inc SHAK, which very recently was a top pick</li

Asia Pacific Hot Stocks

Finally, for the Asia Pacific region, the firm’s number one stock is SAMSONITE INTL SMSOF. The Hong Kong-listed, famed luggage maker was selected as the top pick this week after its CEO Ramesh Tainwala said its position and prospects in China have ameliorated significantly, “after the firm began promoting cheaper products, notable replacing the high end front-of-store displays of cabin-size bags, previously in the $500–$600 range, with the more moderately priced mid-range equivalents at about $300–$350.

Related Link: Short Sellers Are Betting Against These Stocks

“Despite this, and some positive earning numbers earlier this year,” Astec's data suggests an increasing short selling activity during June (it seems like borrowing volumes have doubled over the month), the report explicates.

Another five hot stocks in short-selling corners are:

  • 1. Sharp Corporation (ADR) SHCAY, occupying the same spot as last week.
  • 2. MIXI INC., TOKYO MIXIF
  • 3. GUNGHO ONLINE GUNGF
  • 4. Catcher Technology Co., Ltd. (TPE: 2474)
  • 5. SINGAPORE PRESS HLDG SGPRF; SINGAPORE PRESS HOLD SGPRY
Image Credit: Public Domain
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Posted In: Analyst ColorShort IdeasEmerging MarketsEurozoneMarketsMoversTechTrading IdeasAstec AnalyticsFerreroGUNGFKarl LoomesMIXIFRamesh TainwalaSunGard
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