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 Traders Are Buzzing about These Stocks: Yahoo, Alibaba, and More

Page 1 of 2

It’s a red day on Wall Street as all three indexes have opened in the red. The S&P 500 is off 0.7%, the Dow is down 100 points, and the NASDAQ is off almost three quarters of a percent. Among the stocks buzzing today are Yahoo! Inc. (NASDAQ:YHOO), Macy’s, Inc. (NYSE:M), Alibaba Group Holding Ltd (NYSE:BABA), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), and The Kroger Co (NYSE:KR). Let’s see how elite funds are positioned among the five stocks and take a closer look at the events causing each to be in the spotlight.

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

Alibaba Group Holding Ltd (NYSE:BABA), sign on a building, logo, share, stock, New York, offering

Christopher Penler /

Analysts Upgrade Yahoo

Analysts at Citigroup have upgraded Yahoo! Inc. (NASDAQ:YHOO) to ‘Buy’ from ‘Neutral’ and bumped up their price target to $40.79 per share from $37.32 per share. The analysts cited six factors that have created a favorable risk/reward for shares, including Alibaba’s agreement to buy back shares from Softbank, Alibaba’s more positive outlook, and credible news reports of the sales auction. In regards to the auction, the analysts at Citigroup think Yahoo’s all-in sale price of its core assets will fetch at least $5 billion, and the implied discount to Alibaba and Yahoo Japan will shrink after Yahoo sells off those assets. Among the funds we track, 97 funds owned $7.92 billion worth of Yahoo! Inc. (NASDAQ:YHOO)’s stock, which accounted for 22.70% of the float on March 31, versus 84 funds and $5.92 billion, respectively, a quarter earlier. 

Follow Yahoo Inc (NASDAQ:YHOO)
Trade (NASDAQ:YHOO) Now!

Macy’s Prevents Labor Stoppage

Macy’s, Inc. (NYSE:M) is slightly higher after the retailer struck a tentative deal with a union representing 3,500 workers at the company’s flagship store in NYC and 1,500 workers elsewhere. The Retail, Wholesale, and Department Store Union wanted Macy’s to address issues concerning pensions, health care, and scheduling. The union and Macy’s management pulls an all-nighter to reach a deal satisfactory to both sides to avert a strike. A total of 55 funds from our database had a long position in Macy’s, Inc. (NYSE:M) at the end of the first quarter.

Follow Macy's Inc. (NYSE:M)
Trade (NYSE:M) Now!

On the next page, we examine Alibaba Group Holding, Valeant Pharmaceuticals, and The Kroger Co.

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!