Arm, Mosaic, and Synopsys Shares are On Sale
The steep selloff last Friday, not seen since April, sent shares of three firms lower.
Affected Companies
- Arm Holdings (ARM) dropped by 9.3% on Oct due to reports that SoftBank (SFTBY) would borrow $5 billion, securing the loan with its ARM stock holding.
- Mosaic (MOS) closed at $30.35, down by 9.24% in the fertilizer sector, as production and sales volumes in potash did not meet expectations.
Leveraged investing is rewarding when investments rise, but they cause margin calls and forced selling if purchased assets fall.
Management of Mosaic said that maintenance activities helped lift output, but the firm experienced mechanical issues in its Riverview sulfuric acid plant and utility interruptions at Bartow last month hurt output.
Value investors may add to their position in MOS stock.
Reports that SoftBank (SFTBY) would borrow $5 billion, securing the loan with its ARM stock holding, are disconcerting.
Author's summary: Shares of Arm, Mosaic, and Synopsys are on sale after a steep selloff.