Written by Alexander Crawford
A new survey indicates that the eurozone may be headed into recession, if it's not there already. Data compiler Markit's composite Euro Zone Purchasing Managers' Index (PMI) fell to 49.7 from last month's 50.4, signaling contraction for both services and manufacturing.
According to chief economist at Markit Chris Williamson, "there is a possibility GDP will be flat but chances are we could easily slide back into a very small contraction." (via Reuters)
The EU's Services PMI fell to 49.4 from last month's 50.4, while the manufacturing PMI rose to 49.0 from 48.8. Readings below 50 indicate contraction.
However Markit said this data was collected before the agreement on the latest Greek bailout, which could lead to sharper revisions in the future.
Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below.
Business Section: Investing Ideas
Do you think this recession will occur, and if so, how long will it last? For ideas on finding European stocks that may buck the trend, we ran a screen.
We screened U.S.-traded stocks of European companies for those with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month.
Do you think these stocks will buck the trend? (Click here to access free, interactive tools to analyze these ideas.)
1. DryShips, Inc. (Nasdaq:DRYS): Engages in the ownership and operation of drybulk carriers and drilling rigs that operate worldwide. Shares shorted have decreased from 11.67M to 8.06M over the last month, a decrease which represents about 1.03% of the company's float of 351.91M shares
2. NXP Semiconductors NV (Nasdaq:NXPI): Provides mixed signal solutions and semiconductor components primarily in Japan, Europe, South Korea, Rest of Asia Pacific, and the Americas. Shares shorted have decreased from 4.81M to 4.08M over the last month, a decrease which represents about 1.01% of the company's float of 72.22M shares
3. Tornier N.V. (Nasdaq:TRNX): Operates as a medical device company that designs, manufactures, and markets devices for joint replacement and soft tissue repair that enable surgical specialists to improve patients' lives by restoring motion and physical vitality. Shares shorted have decreased from 853.00K to 678.68K over the last month, a decrease which represents about 1.4% of the company's float of 12.42M shares
4. Vistaprint N.V. (Nasdaq:VPRT): Operates as an online provider of marketing products and services to micro businesses worldwide. Shares shorted have decreased from 11.08M to 10.30M over the last month, a decrease which represents about 2.74% of the company's float of 28.43M shares.
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Kapitall's Alexander Crawford does not own any of the shares mentioned above. Short data sourced from Yahoo! Finance.