Why Are These Stocks In The Red Amid Today’s Rally?

With investors looking to lock in some gains ahead of the New Year break, Rovi Corporation (NASDAQ:ROVI) is also sliding today, currently down by 4.5%. The stock exploded by 30% on December 23, after the company announced a 7-year renewal and expansion agreement with AT&T Inc. (NYSE:T), that will see Rovi continue offering access to its vast portfolio of entertainment discovery patents. Since then, Rovi has surged by more than 56%, ending yesterday’s trading session at $17.71 per share.

Rovi Corporation (NASDAQ:ROVI) gained some popularity among the funds we follow, with the total number of long bets increasing to 22 by the end of September. George Soros‘ Soros Fund Management holds a sizable stake in the company, which amounts to 4.06 million shares valued at $42.6 million at the end of the third quarter.

Shares of Sunedison Inc (NYSE:SUNE) have continued their decline today, dropping by as much as 8.7% during the first hours of trading. On December 24, the company offered an update on its current affairs and the acquisition of Vivint Solar Inc (NYSE:VSLR), sending the stock higher by 10%. It seems the rosy outlook and a fresh line of credit was not enough to appease investors, with the stock tumbling for a second day in a row. So far this year, Sunedison shares are down by 75%.

The troubled solar company has lost some of its appeal during the quarter, with the number of funds invested decreasing to 73 from 93 at the end of June. Although he did not dump the entire position, David Einhorn was among those seeking to distance themselves from Sunedison Inc (NYSE:SUNE), reducing his stake by 26% to a little over 18.6 million shares.

Anavex Life Sciences Corp. (NASDAQ:AVXL) is deep in red after the company announced it has received a subpoena from the Securities and Exchange Commission. Several executives and directors are believed to have violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934. In other news, Anavex has issued the 2015 full year results, reporting an increase in cash and cash equivalents to $15.3 million from $7.3 million a year before, while the net loss for the year dropped to $0.65 per share from $1.02 per share for the 2014 fiscal year. The management has declared itself delighted with the results of the company, pledging to continue the development of ANAVEX 2-73, a candidate for the treatment Alzheimer’s disease.

None of the hedge funds we follow has disclosed ownership of Anavex Life Sciences Corp. (NASDAQ:AVXL) shares as of the end of the third quarter.

Disclosure: none.