The latest EIA numbers are out, and crude futures are taking a step lower due to higher than expected distillate builds. Among the stocks going the opposite way are Birks Group Inc (NYSEMKT:BGI), China Metro Rural Holdings Ltd (NYSEMKT:CNR), Net Element International Inc (NASDAQ:NETE), YY Inc (ADR) (NASDAQ:YY), and Twilio Inc (NYSE:TWLO), which have made big gains as we approach midday. In this article, we’ll take a closer look at why each stock is surging and see how elite funds are positioned in them.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Technical Trading Detected at Birks
Birks Group Inc (NYSEMKT:BGI) shares have surged by 23% on strong volume due to technical trading. Because the company has a relatively small float of 2.6 million shares, its shares can move very quickly. Because Birks shares soared earlier in the month, some traders are buying now in the hope that the momentum will continue. There is no fundamental news concerning the company today however. None of the 766 funds that Insider Monkey tracks had stakes in Birks Group Inc (NYSEMKT:BGI) at the end of March.
China Metro Spikes
China Metro Rural Holdings Ltd (NYSEMKT:CNR) has soared by 51% to trade around $1.53 on technical buying. Like Birks Group, there is no fundamental news concerning the company. China Metro’s surge today is somewhat of a head-scratcher, given that the company announced a go-private plan on May 20 for $1.03 in cash per share. As with all nano-caps, investors are urged to perform due-diligence before buying or selling. No top fund that we track reported holding shares of China Metro Rural Holdings Ltd (NYSEMKT:CNR) as of the end of the first quarter.
On the next page we’ll examine the latest concerning Net Element, YY Inc, and Twilio Inc.