The latest EIA numbers are out and U.S. commercial crude oil inventories decreased by 6.2 million barrels for the week ending September 16. Not surprisingly, oil futures have rallied higher and are now 2.4% in the green.
Among the stocks that are also surging today are MGT Capital Investments Inc. (NYSEMKT:MGT), Cloud Peak Energy Inc. (NYSE:CLD), Etsy Inc (NASDAQ:ETSY), Huntsman Corporation (NYSE:HUN), and Juniper Networks, Inc. (NYSE:JNPR). In this article, we’ll find out why traders are buying up these equities and see how successful investors traded each stock in the second quarter.
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After falling sharply in previous sessions due to news of an SEC subpoena and word that the New York Stock Exchange won’t approve the listing of 43.8 million shares of MGT on its exchange, which the company needs to sell to close on its D-Vassive merger, MGT Capital Investments Inc. (NYSEMKT:MGT) shares have bounced back by 24% this morning. Although there is no fundamental news concerning the stock, traders could be buying for technical and momentum reasons. Some short sellers, for example, may be covering now to take profits, while other technical traders might be buying to catch the latest wave up, however long it might last. According to our records, four funds owned shares of MGT Capital Investments Inc. (NYSEMKT:MGT) at the end of June, out of the 749 that Insider Monkey tracks which filed 13Fs for the latest reporting period.
Bullishness begets bullishness. After surging sharply yesterday, the bulls are still piling into Cloud Peak Energy Inc. (NYSE:CLD) today, as shares of the coal miner are up by 9% in morning trading. Although most analysts believe the odds of Donald Trump becoming President are around 40%-43% or so, the candidate has gathered substantial momentum in recent weeks. If Trump becomes President, many investors believe that he will roll back regulations and coal prices will increase. Given the inherent value in Cloud Peak’s stock if coal prices normalize (the stock trades for a low price-to-book ratio, albeit mostly due to the lack of asset write-downs), the bulls buying today think the stock has substantial upside. Eight funds in our system had a long position in Cloud Peak Energy Inc. (NYSE:CLD) at the end of the second quarter, down by two funds quarter-over-quarter.
On the next page, we’ll examine why traders are buying Etsy, Huntsman Corporation, and Juniper Networks today.