It’s been a good day on Wall Street so far, as all three indexes are once again in the green. The Dow is close to the 18,000 mark while the Nasdaq is within spitting distance of 5,000 and the S&P 500 is firmly above 2,100. Among the stocks up by even more than the three indexes today are China Auto Logistics Inc (NASDAQ:CALI), Globalstar, Inc. (NYSEMKT:GSAT), MGT Capital Investments Inc. (NYSEMKT:MGT), Uranium Energy Corp. (NYSEMKT:UEC), and Advanced Micro Devices, Inc. (NASDAQ:AMD). Let’s find out why traders are buying these stocks and see what the elite funds in our database think of each of them.
At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
China Auto Logistics Spikes
Nano-cap China Auto Logistics Inc (NASDAQ:CALI) is 162% in the green this morning after the company’s wholly-owned subsidiary, Tianjin Binhai Shisheng Trading Group Co., Ltd., signed an equity transfer agreement with Wuxi Huitong Automobile Sales and Service Co concerning the company’s Zhonghe unit. The net proceeds to China Auto from the deal, assuming the completion of the equity and debt transfers, will be around $21 million and will result in an increase of about $5.6 million in the company’s total equity and working capital. CEO Tong Shiping said of the deal:
“The timing of our acquisition of the Airport International Auto Mall ahead of the unforeseen persisting downturn in China’s economy saddled us with significant costs and losses. Becoming unburdened by these costs opens the door to profitable growth once again going forward.”
Of the 766 elite funds in our system, none of them held China Auto Logistics Inc (NASDAQ:CALI) at the end of March. As with all nano-caps, investors should do their due-diligence before buying.
Globalstar Up on Technical Buying
Globalstar, Inc. (NYSEMKT:GSAT) is 3% higher this morning as traders buy in the hopes that the stock’s bounce from June 3’s crash might not be over just yet. Globalstar, Inc. (NYSEMKT:GSAT) fell by around 55% on June 3 on rumors that Jessica Rosenworcel, an FCC Commission member, will vote ‘No’ along with fellow member Ajit Pai on Globalstar’s potential use of unlicensed spectrum for a Wi-Fi service. Seeing as there are five members that can vote concerning the matter, Globalstar’s Wi-Fi hopes might run into serious trouble if fellow member Michael O’Rielly gives the proposal a thumbs down. The stock has bounced back, however, to over $1.10 per share as the rumors have been unsubstantiated so far. Look for shares to remain volatile with the FCC decision looming. Of the funds that we track, 15 of them owned $163.74 million worth of Globalstar, Inc. (NYSEMKT:GSAT) shares at the end of March.
On the next page we examine why MGT Capital Investments, Uranium Energy, and Advanced Micro Devices are in the news today.