Is magicJack VocalTec Ltd (CALL) A Good Stock To Buy?

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Seeing as magicJack VocalTec Ltd (NASDAQ:CALL) has sustained declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of funds that slashed their entire stakes last quarter. At the top of the heap, Constantinos J. Christofilis’ Archon Capital Management said goodbye to the biggest stake of the “upper crust” of funds studied by Insider Monkey, worth an estimated $2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.1 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as magicJack VocalTec Ltd (NASDAQ:CALL) but similarly valued. We will take a look at Ashford Inc (NYSEMKT:AINC), Five Star Quality Care, Inc. (NYSE:FVE), Eiger Biopharmaceuticals Inc (NASDAQ:EIGR), and Hugoton Royalty Trust (NYSE:HGT). This group of stocks’ market valuations resemble CALL’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AINC 4 10454 -1
FVE 8 15228 -1
EIGR 5 14312 0
HGT 5 1572 1

As you can see these stocks had an average of five hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $6 million in CALL’s case. Five Star Quality Care, Inc. (NYSE:FVE) is the most popular stock in this table. On the other hand Ashford Inc (NYSEMKT:AINC) is the least popular one with only four funds holding shares. magicJack VocalTec Ltd (NASDAQ:CALL) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FVE might be a better candidate to consider taking a long position in.

Disclosure: None

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