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/europe-cis/29112016/flsmidths-stock-is-up-21-this-year/
You might also like
World Cement Podcast
Tune into Episode 2 of the World Cement podcast to hear the second half of the CCUS-focused panel discussion from EnviroTech 2024.
Cemex invests in renewable energy in Poland
Cemex has signed an agreement with EDP Energia Poland to build solar installations at several Cemex plants in Poland, with a total capacity of over 14 MWp.
