The steep selloff last Friday, not seen since April, sent shares of three firms lower. In the technology sector, Arm Holdings (ARM) dropped by 9.3% on Oct. 10 to close at $154.81.
Reports that SoftBank (SFTBY) would borrow $5 billion, securing the loan with its ARM stock holding, are disconcerting. Leveraged investing is rewarding when investments rise. They cause margin calls and forced selling if purchased assets fall.
In the fertilizer sector, Mosaic (MOS) closed at $30.35, down by 9.24%. Production and sales volumes in potash did not meet expectations. Shipment timing delays led to hurt potash and phosphate sales volumes.
Management said that maintenance activities helped lift output, but the firm experienced mechanical issues in its Riverview sulfuric acid plant. In addition, utility interruptions at Bartow last month hurt output.
Value investors may add to their position in MOS stock. Cautious investors might demand a bigger margin of safety.
Synopsys (SNPS) erased some of its gains from the last month. In the last quarter, its IP business underperformed when export restrictions disrupted its design starts in China.
The firm’s Ansys acquisition adds uncertainties. Still, the company expects Ansys to strengthen its position as an EDA (electronic design automation) leader. However, heightening trade tensions between the U.S. and China might hurt Synopsys’s business in China.
