The markets are trading in the negative territory, owing to uncertainties associated with ongoing earnings season. Alcoa announced disappointing results while Bank of America has issued warning that stock prices are close to ‘tech bubble’ levels.
However, there are several stocks which are showing significant uptick in the current session. Among these stocks are Biostar Pharmaceuticals Inc. (NASDAQ:BSPM), Nova Lifestyle Inc. (NASDAQ:NVFY), Carbonite Inc. (NASDAQ:CARB), KemPharm Inc. (NASDAQ:KMPH), and Straight Path Communications Inc. (NYSEMKT:STRP). This article will explore the news behind these stocks and will assess the hedge fund sentiment towards them.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
Biostar Pharmaceuticals Inc. (NASDAQ:BSPM) stock climbed 33% higher in the current trading session as the company announced the launch of its new product for treating effects of Sinusitis and Rhinitis. The topical health product is called “Easy Breathing” and will be released in China in November. Biostar Pharmaceuticals expects to sell nearly 400,000 units within the next two years, and expects to generate $7.5 million in revenue. Jim Simons’ Renaissance Technologies held 105,956 shares of Biostar Pharmaceuticals Inc. (NASDAQ:BSPM), valued at $468,000 at the end of June.
Nova Lifestyle Inc. (NASDAQ:NVFY) stock has gained 21% after the company announced signing a new framework agreement with a Hong Kong and Malaysian company, The Future Biz School, for the supply of goods. The deal is expected to be worth $15 million per year and will involve supplying US made mattresses and other products. In other news, the company also said that its CEO Ya Ming “Jeffrey” Wong had resigned and will be replaced by president Tawny Lam, who will serve as interim CEO. None of the funds tracked by us held shares of Nova Lifestyle Inc. (NASDAQ:NVFY) at the end of the second quarter.