Whoa! These 3 Stocks Are Outpacing the Dow’s Run: Research In Motion Ltd (BBRY), MannKind Corporation (MNKD), Dex One Corporation (DEXO)

Page 1 of 2

Wash. Rinse. Repeat. The Dow Jones Industrial Average is making hitting new highs look easy these days, and no longer does it have to make dramatic jumps to do so, either. Simply tacking on a few dozen points daily is enough to do the trick. Yesterday’s 50-point gain to close above 14,447 marked yet another new record and represented the index’s seventh straight day of gains as a solid jobs number last week seemed to indicate the economy had really made a turn.

MannKind Corporation (NASDAQ:MNKD)We’ll see, but the three stocks below had their own reasons to celebrate, although you should resist the urge to high-five everyone in the cubicles next to you. Smart investors won’t celebrate until they know why their stock surged, because without a fundamental basis for the bounce, these stocks could just as quickly make the return trip down.

Company % Gain
Dex One Corporation (NYSE:DEXO) 18.6%
Research In Motion Ltd (NASDAQ:BBRY) 14.1%
MannKind Corporation (NASDAQ:MNKD) 11.4%

Who’s got short shorts?
While there was no company specific news to account for the rise of Dex One Corporation (NYSE:DEXO), a local business marketing service similar to Yelp Inc (NYSE:YELP), its stock is up 45% since a recent low at the end of February and it may be going through a short squeeze.

According to data provided by the Nasdaq exchange, Dex One had more than 10.1 million shares sold short as of Feb. 28, representing almost 22% of its float. With low average daily trading volumes, the business promoter had a short interest ratio of an astounding 78 days to cover. That means it would take about two and a half months to completely buy back all the shares sold short. The Motley Fool believes anything over seven days is a lot.

A short squeeze becomes a vicious cycle feeding on itself. As more shorts cover their positions, it drives the price higher, forcing more shorts to do the same. Where it stops, no one knows but Dex One Corporation (NYSE:DEXO) seems to be in the middle of one that just might have some legs. Of course, when it’s over it still remains the business that will determine its price and heretofore the market hasn’t been willing to accord it much of a valuation.

How do you say BlackBerry in Mandarin?
As the second largest computer maker with a 14.8% share of the global PC-shipments market last year, Lenovo has its sites firmly set on overtaking top-seated Hewlett-Packard Company (NYSE:HPQ), which has a 16% share. It’s also the eighth largest handset maker, according to ABI Research , and it wants to vault into the top ranks buying out BlackBerry, the former Research In Motion Ltd (NASDAQ:BBRY). At least that’s what investors are hoping happens.

Lenovo’s CEO said a takeover of the smartphone maker “could eventually make sense” in the scheme of opportunities for external growth and another company executive had made similar rumblings back in January. So with the launch of its new BB10 operating system and AT&T Inc. (NYSE:T) ready to launch its new BlackBerry Z10 touch-screen smartphone on March 22, the handset maker has seen its shares jump 16% over the past week — and they’re up 25% over the last three months.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!