Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What’s the Deal With These 4 Plummeting Stocks?

Page 1 of 2

After surging in the morning, major U.S stock indexes performed a repeat of yesterday’s trading activity by falling in the afternoon. Among the stocks driving these declines, we will highlight Skullcandy Inc (NASDAQ:SKUL), which was trading down more than 30.5%, as well as Ascena Retail Group Inc (NASDAQ:ASNA), Boot Barn Holdings Inc (NYSE:BOOT) and Sunedison Inc (NYSE:SUNE), all down by double digits. But, what is driving these large dips? And how do the hedge funds in our database feel about these companies? Let’s find out.

Why are we interested in the 13F filings of a select group of hedge funds? We use these filings to determine the top 15 small-cap stocks held by these elite funds based on 16 years of research that showed their top small-cap picks are much more profitable than both their large-cap stocks and the broader market as a whole; yet investors have been stuck (until now) investing in all of a hedge fund’s stocks: the good, the bad, and the ugly. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic the best ideas of the best fund managers on your own? These top small-cap stocks beat the S&P 500 Total Return Index by an average of nearly one percentage point per month in our backtests, which were conducted over the period of 1999 to 2012 (see more details).

The largest decliner in this list is Skullcandy Inc (NASDAQ:SKUL), which has lost more than 30.5% in Tuesday trading after management cut its fourth-quarter guidance on Monday evening. The company now expects fourth-quarter earnings of $0.20-to-$0.22 per share, down from its previous outlook of $0.38-to-$0.40 per share. Management attributed the cut to sluggish holiday sales and a shift in gross margins.

Follow Skullcandy Inc. (NASDAQ:SKUL)
Trade (NASDAQ:SKUL) Now!

Over the third-quarter of 2015, Skullcandy Inc (NASDAQ:SKUL) witnessed a slight decline in hedge fund interest. The number of funds that disclosed long stakes in the company among those we track fell to 13 from 14 over the quarter. Steven Boyd’s Armistice Capital, the largest shareholder in our database, also trimmed its exposure by 40% over the period, to 854,000 shares worth about $4.72 million.

Another big loser today is Ascena Retail Group Inc (NASDAQ:ASNA), down about 12.7% after management announced disappointing holiday sales; consolidated comparable-store sales fell by 4% year-over-year over the holiday period. Following the poor performance, the company trimmed its second-quarter of fiscal year 2016 EPS guidance to $0.00-to-$0.03, from last month’s estimate of $0.02.

Follow Ascena Retail Group Inc. (NASDAQ:ASNA)
Trade (NASDAQ:ASNA) Now!

As in Skullcandy’s case, hedge fund interest in Ascena Retail Group Inc (NASDAQ:ASNA) fell during the most recent filing period. Long positions fell by two to 23 over the period, though these funds still held about 17.4% of the company’s total shares, led by Alexander Medina Seaver’s Stadium Capital Management, holding almost 5% of the outstanding stock.

On the next page, we’ll take a look into the events pushing Boot Barn Holdings Inc (NYSE:BOOT) and Sunedison Inc (NYSE:SUNE) lower today.

Page 1 of 2

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!