Four Stocks That Have Investors Buzzing Today

U.S stocks are trading in a narrow range this morning, as investors are digesting corporate news and looking for further clues as to a potential rate hike in December. The initial public offerings of Square and Match Group are the highlights of the day, but investors are also talking about KaloBios Pharmaceuticals Inc (NASDAQ:KBIO), Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Keurig Green Mountain Inc (NASDAQ:GMCR). Let’s find out why.

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KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) shares have skyrocketed today after news emerged that the notorious Martin Shkreli, Chief Executive Officer of Turing Pharmaceuticals, purchased 1.2 million shares of the company. This comes as a surprise, as KaloBios was set to wind down its operations; now, the stock has soared by more than 450% in trading today. The company announced on Friday that it would stop its research of two blood cancer drugs that it was working on. Now, management has received a proposal to continue operations and is reportedly willing to sit at the negotiating table.

Jim Simons is the only hedge fund manager who had the courage to stick with KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) until the very end; only the end never came and Simons is going to get a nice reward. In its latest 13F filing, Renaissance Technologies reported ownership of 135,610 shares valued at $259,000. Right now these same shares are worth more than $1.51 million.

Not all Chinese companies were affected by the recent economic slump, as Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) managed to beat third quarter estimates and has a rosy outlook for the fourth quarter. The online travel company has posted revenues of $500.6 million, 49% higher than last year’s figure and above analysts’ estimates of $490 million. Investors were also thrilled by the company’s operating margin reaching 17% and its solid outlook for the fourth quarter: revenues are expected to grow by 45-to-50%. Shares are up by 19.28% today on the positive results.

Hedge fund support for Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) took a tumble during the third quarter, with the number of funds holding the stock having fallen to 43, from 52 at the end of June. They still have a significant presence among Ctrip shareholders however, controlling roughly 23% of its common stock. Viking Global was among the funds that sought to distance themselves from the company, fearing the economic slump would affect revenues. During the third quarter, Andreas Halvorsen dumped roughly 14% of his position, taking it to 4.91 million shares with a value north of $310 million. Ken Fisher‘s bullish bet on Ctrip should pay off handsomely, with the stock having staged a rally since the end of August. In its latest 13F filing, Fisher Asset Management reported a 25% increase in its holding to 4.05 million shares worth approximately $256 million.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is determined not to give in to the panic that ensued after the stock plummeted and is set to offer more shares and cash to employees in order to avoid an exodus of key figures. The company had been using stock to compensate its employees, but the recent crash in its stock price has seen the value of the remuneration decrease drastically. Compensation packages for some employees have already been boosted and the company plans to extend the incentives to a larger number of its employees. “In the U.S., definitely there has been some anxiety. Through this turmoil, we definitely don’t want to see an exodus,” said Laurie Little, head of investor relations. The news has had a positive impact on the stock, currently up by roughly 8%.

Although the number of elite funds holding Valeant Pharmaceuticals Intl Inc (NYSE:VRX) at the end of September decreased to 88 from 98 that held it at the end of the second quarter, the stock has remained in the top 25 stocks that hedge funds are betting heavily on. Bill Ackman and Jeffrey Ubben have fought the urge to cut losses and kept their holdings intact during the third quarter. Stephen Mandel, on the other hand, used the opportunity to buy the stock on the cheap, boosting his investment by 40% to 7.46 million shares valued at $1.33 billion.

Keurig Green Mountain Inc (NASDAQ:GMCR)’s stock has been hit by a caffeine rush this morning, rising by nearly 25% after a better-than-expected earnings report. The specialty coffee maker posted a profit of $94.6 million, which translates into $0.61 per share. When adjusted for asset impairment and non-recurring costs, earnings stand at $0.85 per share, beating the Street’s expectations of $0.70 per share. Revenues came in at $1.04 billion, above estimates of $1.02 billion. The good news didn’t stop there, as Keurig’s management announced a 13% increase to its annual dividend, to $1.30 per share.

Hedge funds have drastically reduced their presence as shareholders of Keurig Green Mountain Inc (NASDAQ:GMCR), with only 16 funds having reported a long position in the stock at the end of the third quarter, down from 29 at the end of June. Their combined investments account for just 5.8% of the company’s outstanding stock. Ricky Sandler is still bullish on Keurig Green Mountain, having further increased his investment during the third quarter. His fund, Eminence Capital, holds 3.72 million shares, up by 244% from the end of June.

Disclosure: None