Is Daqo New Energy Corp (DQ) A Good Stock To Buy?

Page 2 of 2

As aggregate interest increased, some big names have been driving this bullishness. Pine River Capital Management initiated the most valuable position in Daqo New Energy Corp (NYSE:DQ). Pine River Capital Management had $1.7 million invested in the company at the end of the quarter. Navellier & Associates also made a $0.4 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Daqo New Energy Corp (NYSE:DQ). These stocks are New Home Company Inc (NYSE:NWHM), Great Panther Silver Ltd (USA) (NYSEAMEX:GPL), Destination XL Group Inc (NASDAQ:DXLG), and TechTarget Inc (NASDAQ:TTGT). This group of stocks’ market values resemble DQ’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NWHM 5 27999 0
GPL 7 4377 7
DXLG 9 88905 -1
TTGT 13 80466 2

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $28 million in DQ’s case. TechTarget Inc (NASDAQ:TTGT) is the most popular stock in this table. On the other hand New Home Company Inc (NYSE:NWHM) is the least popular one with only 5 bullish hedge fund positions. Daqo New Energy Corp (NYSE:DQ) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TTGT might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2