It’s been a pretty bad day to be a bull on Wall Street after yesterday’s shocking Brexit vote. All three major indexes have plunged on Friday’s intraday trading.
Among the stocks in the spotlight today are J C Penney Company Inc (NYSE:JCP), Gramercy Property Trust (NYSE:GPT), BT Group plc (ADR) (NYSE:BT), Canadian Solar Inc. (NASDAQ:CSIQ), and NTT Docomo Inc (ADR) (NYSE:DCM). Let’s find out why these stocks are trending today and what the funds tracked by us think about the companies in question.
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).
J C Penney Completes Billion Dollar Refinancing
J C Penney Company Inc (NYSE:JCP) is trending after the retailer completed the refinancing of a $1.0+ billion, multiple year senior secured term loan credit facility. The refinancing represents a 75 basis point reduction and extends the maturity of the facility to 2023 from 2018. J C Penney expects to save $24 million in annualized interest rate expenses from the deal. Separately, analysts at B. Riley have reiterated their ‘Buy’ rating and $15 price target on the stock. Despite the good news, shares of the retailer are down today due to broader market weakness. Of the 766 elite funds we track, 32 funds owned $424.92 million worth of J C Penney Company Inc (NYSE:JCP)’s stock, which accounted for 12.50% of the float on March 31, versus 27 funds and $272.6 million, respectively, a quarter earlier.
Gramercy Property Provides Update on Brexit Exposure; Shares Off Only Half a Percent
Not all companies are equally affected by Britain’s shocking decision to leave the EU yesterday. According to Gramercy Property Trust (NYSE:GPT), the company only has capital exposure of GBP 36 million and current NOI of GBP 2.0 million in exposure. The exposure is mainly derived from Gramercy’s 80% interest in three logistics assets and a 50,000 square foot office facility in the United Kingdom. The four assets are owned without leverage and as previously stated, Gramercy plans to dispose the four assets over the next 12 months. A total of 13 funds tracked by us owned shares of Gramercy Property Trust (NYSE:GPT) at the end of the first quarter.
On the next page, we examine BT Group, Canadian Solar, and NTT Docomo.