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.

Why Did My Stock Just Die? – Inc (SOHU), Acura Pharmaceuticals, Inc (ACUR), AeroVironment, Inc. (AVAV)

Page 1 of 2

It was only a 42-point gain yesterday, but the Dow Jones Industrial Average rose to yet another new record high, hitting 14,296 and making this the eighth longest bull market since 1928. With Fed Chairman Ben Bernanke greasing the skids with his QE-infinity, Warren Buffett agreed in a CNBC interview that “cheap money makes things happen.” Of course, what happens when the spigot gets turned off, as it eventually must, is left unsaid. Inc (NASDAQ:SOHU)The three stocks below, however, were in no mood to celebrate, with several incurring double-digit losses on the day. But don’t go running over the cliff with them like a bunch of lemmings: This could just be a temporary situation. Let’s first see whether they had good reason to fall as panic-fueled routs can sometimes lead to excellent buying opportunities.

Company % Change
Acura Pharmaceuticals, Inc (NASDAQ:ACUR) (12.2%) Inc (NASDAQ:SOHU) (11.1%)
AeroVironment, Inc. (NASDAQ:AVAV) (9.8%)

Accurately depicted
Two steps forward, one step back. That describes what you’re seeing at Acura Pharmaceuticals, Inc (NASDAQ:ACUR) after the stock pulled back following its 48% gain the day before after announcing the Kerr Drug chain would carry its Nexafed decongestant throughout its stores in North Carolina.

As part of the FDA’s push to make it difficult to abuse certain drugs, Nexafed is designed so it is difficult to make into methamphetamine. Its composition is such that should a drug abuser try to extract the active ingredient, pseudoephedrine, the whole thing would turn into an unusable thick gel.

Acura Pharmaceuticals, Inc (NASDAQ:ACUR) began selling Nexafed in December and has been anticipating independent drug stores rather than chains picking up the decongestant, and when it reported its fourth quarter results on Monday, it said it had entered distribution agreements at the end of February with most national and regional drug wholesalers.

Although the stock is down another 9% in early morning trading, it remains up 10% so far this year.

Privately speaking Inc (NASDAQ:SOHU) also gave back the gains it made the day before after the Chinese Internet portal denied rumors it was actively seeking a go-private deal. On Tuesday, Sohu’s stock jumped 12% after the South China Morning Post reported that the company was in talks with investment banks and private equity funds about a possible buyout, but yesterday the CFO shot them down saying the reports were inaccurate as not only were they not involved in any such discussions, but the idea wasn’t even being considered. Inc (NASDAQ:SOHU)’s stock ended the day at $43.44, some $0.20 lower than where they had been before the rumor was published, making it down 16% for the past year.

It wouldn’t have been a surprise, though, had Sohu actually confirmed the rumor. After numerous reports of fraud and financial shenanigans occurred at small, Chinese companies over the past few years, investors lost their appetite for them, and many company insiders began mulling whether to take their companies private. The Chinese government jumped into the fray by actively encouraging them to do so, even going so far as to provide upwards of $1 billion in state financing to assist them. Inc (NASDAQ:SOHU), however, seems one that will be wedded to U.S. markets, at least for the time being.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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!