Stocks are in the red on Monday following Fed Chair Janet Yellen’s speech on Friday, in which she said the US economy is still facing the reverberations of 2008-2009 crisis, which can only be undone by aggressive steps.
Meanwhile, investors are paying close attention to some of the stocks today, including Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), Syneron Medical Ltd. (NASDAQ:ELOS), Omeros Corporation (NASDAQ:OMER), Rogers Communications Inc. (USA) (RCI) Rogers Communications Inc. (USA) (NYSE:RCI), and Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS). This article discusses the reasons behind the movement of these stocks, and assesses hedge fund sentiment towards them.
By analyzing the equity portfolios of some 750 investors, we can see what stocks they are collectively bullish on and use this data to compile a portfolio that can outperform the market. We have determined through this process that the best strategy is to follow the 15 most popular small-cap picks among hedge funds, which have delivered an alpha of around 81 basis points per month in our backtests covering the period between 1999 and 2012 (see more details).
Zynerba Pharmaceuticals Updates on ZYN001, ZYN002
Specialty pharmaceutical company Zynerba Pharmaceuticals Inc(NASDAQ:ZYNE) is in the spotlight today after the company released a press update on its fibromyalgia and peripheral neuropathic pain drug ZYN001 and permeation-enhanced gel ZYN002. Zynerba now expects to begin Phase 1 clinical trials for ZYN001 in the first half of 2017 and Phase 2 clinical trials are planned to commence in the second half of 2017, while ZYN002 is on track to report topline results in the first half of 2017. The statement said Phase 2 clinical trials are being performed in patients with refractory epilepsy and knee pain associated with osteoarthritis. Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE)’s CEO Armando Anido said the company has made a “tremendous” progress in transforming ZYN001 into an optimized transdermal patch that balances efficacy with patient convenience. Mr. Anido added that the company has completed several prototypes which are smaller and more patient-friendly as compared to the original design. Just five funds out of over 750 funds tracked by Insider Monkey were bullish on Zynerba Pharmaceuticals Inc(NASDAQ:ZYNE) at the end of the second quarter.
Syneron Medical Announces Management Changes, Preliminary Revenue
Syneron Medical Ltd. (NASDAQ:ELOS)’s stock is gaining value today after the company announced a few management changes, and disclosed preliminary revenue for the third quarter. The Israel-based aesthetics medical products company said Philippe A. Schaison, who comes from Allergan Plc, is joining the company as CEO of Syneron Candela North America and Global Executive Vice President Strategy and Business Development. Co-founder of Alma Lasers, a cosmetic laser solutions company, Yariv Matzliach is joining Syneron as Executive Vice President, Distribution Channels. Paul Little, who has served in Allergan Medical Aesthetics, is joining Syneron as Global Chief Operating Officer. The company expects third-quarter revenue to come in at $70 million to $72 million, up by approximately 14%-17% year-over-year. Analysts were expecting a revenue of $66.7 million. The statement said the revenue was spearheaded by the company’s emerging products. Total Body Shaping revenue in the third quarter 2016 was approximately $14 million, 40% year-over-year, mainly from UltraShape sales. Richard Mashaal’s Rima Senvest Management owns 3.84 million shares of Syneron Medical Ltd. (NASDAQ:ELOS) as of the end of the June quarter.
On the next page, we will see why shares of Omeros, Rogers Communcations and Kratos Defense are trending today.