Although all three indexes are lower, it’s a relatively quiet day on Wall Street. The VIX fear index is up by just 3% and below 15, while crude futures have rallied back to being down by just 1% this afternoon. Among the stocks suffering more noteworthy losses today are Tesco Corporation (USA) (NASDAQ:TESO), Tailored Brands Inc (NYSE:TLRD), Seadrill Ltd (NYSE:SDRL), KemPharm Inc (NASDAQ:KMPH), and Freeport-McMoRan Inc (NYSE:FCX). Let’s find out why traders are selling out of these five stocks and see how elite hedge funds have been trading these equities of late.
Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).
Tesco Declines on Secondary Offering
Tesco Corporation (USA) (NASDAQ:TESO) is 7% lower today after the company priced its secondary offering of 7.00 million shares at $7.00 a piece. The underwriter of the offering, BofA Merrill Lynch, has the option to purchase an additional 1.05 million shares at the offering price. Tesco will use the net proceeds from the offering for general corporate purposes. Of the 766 active funds that we track, seven funds were long Tesco Corporation (USA) (NASDAQ:TESO) on March 31.
Tailored Brands Misses Earnings Expectations
Tailored Brands Inc (NYSE:TLRD) shares have retreated by almost 20% today after the company whiffed on its latest earnings report. For its fiscal first quarter, Tailored Brands earned $0.29 per share on revenue of $828.82 million, missing the consensus estimates by $0.16 per share and $13.21 million respectively. Sales fell by 6.4% year-over-year as comparable-store sales at Men’s Wearhouse retreated by 3.5% and comparable-store sales at Jos. A. Bank fell by 16% year-over-year. Despite the soft quarter, management continues to expect fiscal 2016 adjusted EPS of $1.55-to-$1.85. Tailored Brands Inc (NYSE:TLRD) was in 19 elite funds’ portfolios at the end of March, among the funds in our database.
On the next page we examine why investors are fleeing the shares of Seadrill Ltd, KemPharm Inc, and Freeport-McMoRan Inc.