Top of hot stocks: Countrywide PLC (CWD)
04 July 2018 London
Image: Shutterstock
Countrywide PLC (CWD) led the FIS Astec Analytics hot stocks for Europe, the Middle East, and Africa last week.
CWD, the beleaguered UK estate agent, failed to raise additional credit, which forced the company to look to shareholders for a 拢100 million lifeline, causing the shares to collapse to close last week at 拢0.38, a loss of 78 percent over the last 12 months.
Short sellers have not been shorting the company aggressively, holding just 25 percent of the available shares last week, down from a peak of 52 percent last November.
Those that were holding short positions have been amply rewarded, but those who closed out too early will be regretting their decision, FIS says.
Following CWD was Hennes & Mauritz AB (HMb), the apparel accessories company trading under a number of high street brands, including H&M. Short interest peaked in May, in volume terms, but have fallen back some 9 percent since.
Over the same period, however, utilisation has risen by 8 percent, closing last week at 84 percent, suggesting a sharp contraction in supply as long investors sell out of the falling shares.
Senseonics Holdings Inc (SENS), a US-based medical technology company, topped the Americas hot stocks last week.
FIS said: 鈥淪hort interest volume has been growing slowly since January 2017, growing by a factor of 15 over the 18 months to June 2018.鈥�
Since then, short interest has leapt a further 135 percent to a 12-month peak, before dropping back to a net gain of 40 percent, attracted by the sudden leap in the share price to $4.98.
Utilisation was pushed to 100 percent briefly, before closing the week at 61 percent, underlining the market鈥檚 lack of support for this price level.
Following SENS was Transenterix Inc (TRXC), the US-based medical device company, who saw their short price and short interest jump.
FIS said: 鈥淪hort interest has continued to grow rapidly, adding over 31 percent over the week. Utilisation, by contrast, dropped 14 percent, suggesting a surge in supply, which could be attributed to the very large fees borrowers are willing to pay.鈥�
CWD, the beleaguered UK estate agent, failed to raise additional credit, which forced the company to look to shareholders for a 拢100 million lifeline, causing the shares to collapse to close last week at 拢0.38, a loss of 78 percent over the last 12 months.
Short sellers have not been shorting the company aggressively, holding just 25 percent of the available shares last week, down from a peak of 52 percent last November.
Those that were holding short positions have been amply rewarded, but those who closed out too early will be regretting their decision, FIS says.
Following CWD was Hennes & Mauritz AB (HMb), the apparel accessories company trading under a number of high street brands, including H&M. Short interest peaked in May, in volume terms, but have fallen back some 9 percent since.
Over the same period, however, utilisation has risen by 8 percent, closing last week at 84 percent, suggesting a sharp contraction in supply as long investors sell out of the falling shares.
Senseonics Holdings Inc (SENS), a US-based medical technology company, topped the Americas hot stocks last week.
FIS said: 鈥淪hort interest volume has been growing slowly since January 2017, growing by a factor of 15 over the 18 months to June 2018.鈥�
Since then, short interest has leapt a further 135 percent to a 12-month peak, before dropping back to a net gain of 40 percent, attracted by the sudden leap in the share price to $4.98.
Utilisation was pushed to 100 percent briefly, before closing the week at 61 percent, underlining the market鈥檚 lack of support for this price level.
Following SENS was Transenterix Inc (TRXC), the US-based medical device company, who saw their short price and short interest jump.
FIS said: 鈥淪hort interest has continued to grow rapidly, adding over 31 percent over the week. Utilisation, by contrast, dropped 14 percent, suggesting a surge in supply, which could be attributed to the very large fees borrowers are willing to pay.鈥�
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