Although the broader indexes are relatively flat overall, with the Dow off by 35 points, the S&P down by 0.17%, and the NASDAQ inching lower by 0.04%, shares of Cree, Inc. (NASDAQ:CREE), Sigma Designs Inc (NASDAQ:SIGM), Delta Air Lines, Inc. (NYSE:DAL), Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI), and Beazer Homes USA, Inc. (NYSE:BZH) are each showing more volatility than the broader market.
In this article, we’ll find out why traders are buying and selling these stocks today, and use the latest SEC filings to determine how the world’s greatest investors were positioned in them during the second quarter.
We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).
China Rules Lift LED Producers
Cree, Inc. (NASDAQ:CREE) is up by 3% today after the DigiTimes reported that the Chinese government will ban the sale of incandescent light bulbs of between 15W and 60W, beginning October 1. Due to the ban, experts expect demand for LED bulbs, which Cree specializes in, to rise, as LED’s currently account for just 30% of all lighting purchases in the nation. Out of the 749 hedge funds that we track which filed 13F’s for the June quarter, 11 were long Cree, Inc. (NASDAQ:CREE) on June 30, down by six from the March quarter.
Sigma Designs Sinks A Day After Earnings
Although the company reported better-than-expected results for its fiscal year 2017 second quarter yesterday, which pushed shares up by over 6% for the day, traders have grown less impressed the longer they’ve had to look at them, pushing Sigma Designs Inc (NASDAQ:SIGM) shares 7.7% lower today as a result. For the quarter, Sigma Designs earned $0.07 per share on sales of $61.3 million, beating the consensus marks by $0.06 per share and $0.11 million respectively. Revenue rose by 5.5% year-over-year and by 14% sequentially due to strong demand and early adoption of the company’s Connected SmartTV Platforms product. However, earnings were off by 42% year-over-year, which may have begun to spook investors. Jim Simons‘ Renaissance Technologies held over 1.9 million shares of Sigma Designs Inc (NASDAQ:SIGM) at the end of June.
On the next page we’ll examine the latest activity concerning Delta Air Lines, Ollie’s Bargain Outlet, and Beazer Homes.