Market sentiment is positive on Thursday after polls suggesting low chances of a Brexit. A decline in U.S. jobless claims last week to near a 43-year low also contributed to the market rally.
Some stocks that are worth watching today include CVD Equipment Corporation (NASDAQ:CVV), Alphabet Inc (NASDAQ:GOOGL), Micron Technology, Inc. (NASDAQ:MU), Gilead Sciences, Inc. (NASDAQ:GILD) and Boeing Co (NYSE:BA). This article sheds some light on the reasons of these stocks’ popularity and analyzes the respective smart money sentiment towards them.
Imitating hedge funds and other institutional investors can help identify some of the most profitable stocks on the market. However, our extensive research that covered the period between 1999 and 2012, showed that the best approach is to follow these investors into their small-cap stocks. Our backtests showed that the 15 most popular small-cap stocks among hedge funds managed to generate a monthly alpha of 81 basis points, versus an alpha of 0.7 percentage points posted by their top 50 large-cap picks (see more details here).
CVD Equipment Gets New Order Worth $30 Million
CVD Equipment Corporation (NASDAQ:CVV)’s stock has surged by more than 20% so far today after the company announced on Wednesday that it had received an order worth about $30 million from a major aviation component supplier to make fiber coating systems for its high volume facility. According to CVD, the same customer bought its system in 2015. CVD Equipment Corporation’s CEO Leonard A. Rosenbaum said that the new order is a testament to the company’s “differentiated technology” and confirms its position as a leading supplier of next generation technology for the aerospace industry. Only two funds from our database were long CVD Equipment Corporation (NASDAQ:CVV) at the end of the first quarter. Mark Broach’s Manatuck Hill Partners is one of them with ownership of 285,000 shares of the company.
Google Fiber Acquires Webpass
Alphabet Inc (NASDAQ:GOOGL) is in the spotlight after its Google Fiber division said it is acquiring San Francisco-based internet service provider Webpass. Financial details of the deal were not disclosed. With the acquisition of Webpass, Google’s fiber internet service will have an established commercial provider of gigabit internet to bolster the company’s expansion. Charles Barr, president of Webpass said that both companies can work together to accelerate the deployment of “super-fast” internet connections for customers across the US. Alphabet Inc (NASDAQ:GOOGL)” class A stock is the third most popular among the funds in our database with 155 funds having reported stakes as of the end of March. Andreas Halvorsen’s Viking Global owns about 2.05 million class A shares of the company.
Move on the next page where we discuss Micron Technology, Gilead Sciences and Boeing.