FLSmidth’s stock is up 21% this year
Published by Joseph Green,
Editor
World Cement,
According to the latest Bloomberg report, FLSmidth was among Europe’s most-shorted stocks last year. Now, hedge funds are abandoning their bets against the company as the surprise US election result has investors bracing for a construction boom that could revive an industry battered by years of hardship.
Short interest in FLSmidth dropped to 3.1% last week, according to Markit data. That is down from 6% before the US election, and marks the lowest level of short interest in FLSmidth since 2009.
As recently as September 2015, bets against FLSmidth represented about 23% of shares outstanding, making it the most shorted company in the Stoxx Europe 600 Index after Carillion, according to Markit.
Helped by higher prices for commodities, FLSmidth’s stock is up 21% this year. It is unfamiliar territory for FLSmidth, whose stock has declined over the past five calendar years.
The practice of short-selling means investors borrow stock and sell it, betting it will decline so they can make a profit when they repurchase it.
FLSmidth earlier this month reported Q3 earnings that beat analyst estimates. The report was a turning point in the investment story of the company.
Read the article online at: https://www.worldcement.com/africa-middle-east/29112016/flsmidths-stock-is-up-21-this-year/
You might also like
The World Cement Podcast
In this special joint episode of the World Cement Podcast, and Cementing Europe’s future, the podcast of CEMBUREAU, David Bizley and Koen Coppenholle take a deep dive into the Clean Industrial Deal and a discussion of what it means for the European cement industry.
Listen for free today at www.worldcement.com/podcasts or subscribe and review on your favourite podcast app.
FLSmidth signs agreement to divest its Cement business
FLSmidth signs agreement to divest its Cement business to become a pure-play supplier of technology and services to the mining industry.
