Why Are Walt Disney Co (DIS) And Sunedison Inc (SUNE) Among Today’s Top Gainers?

Sunedison Inc (NYSE:SUNE)’s shareholders are all smiles this morning, as the stock has surged by as much as 12% during the first hours of trading after the company announced a deal with Ontario’s Independent Electricity System Operator to supply 5 MW/20 MWh of energy storage. The stock has recently received some positive reviews from analysts at Deutsche Bank and Bank of America, who reiterated their ‘Buy’ ratings last Thursday. Deutsche Bank set a price target of $9 per share, while analysts at BofA have reduced their expectations to $12 per share, from the previous target of $15 per share.

Sunedison Inc (NYSE:SUNE)’s appeal to hedge fund managers cooled off during the quarter, with the number of long positions decreasing to 73 from 93 at the end of June. David Gallo seems to be confident the stock is poised for a rally and has used the opportunity to load up on a dip. His fund, Valinor Management, reportedly holds 15.6 million shares, up by 231% from the end of June, valued at $111 million.

Shares of UTStarcom Holdings Corp (NASDAQ: UTSI) jumped by as much as 28% this morning, leading the solid advance of wireless communications stocks. The company has a market cap of $77.5 million and does not pay a dividend. UTStarcom’s third-quarter results were disappointing, as revenues fell by 15% year over year to $26.8 million. The company also posted a loss of $5.1 million, the equivalent of a loss of $0.13 per share when adjusted for stock option expenses.

At the end of September only two of the funds we follow had UTStarcom Holdings Corp (NASDAQ:UTSI) in their equity portfolio, down from four at the end of the second quarter. Still, these funds control roughly 30% of the company’s common shares. Himanshu H. Shah is betting heavily on this stock, having pledged more than a quarter of his portfolio to this position. According to its latest 13F filing, Shah Capital Management holds 10.6 million shares of UTSI, valued at $25.8 million.

Disclosure: none