Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).
Owens & Minor Loses a Big Account
Traders have sold Owens & Minor, Inc. (NYSE:OMI) off to the tune of 9% after the company announced that one of its major customers will not renew a distribution agreement with it. The customer is a national healthcare-provider and generated $525 million in revenue for Owens & Minor in 2015. The transitioning out of the customer will begin in late 2016. Although Owens & Minor affirmed its financial outlook for 2016, consisting of adjusted earnings of $2.00-to-$2.05 per share, the impact of the transition will have a large impact in 2017, barring any major intervening moves. 14 savvy funds that we track owned 6.3% of Owens & Minor, Inc. (NYSE:OMI) at the end of December.
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Technical Selling Detected at Repros
Repros Therapeutics Inc (NASDAQ:RPRX) is off by 8.6% on no fundamental news. Shares of the company have surged substantially since the middle of April and some of today’s selling could be due to profit-taking. The nano-cap surged in mid-April due to the announcement of successful data from a Phase 2b trial of the company’s lead drug candidate Proellex, which showed the ability to lower menstrual bleeding in women with uterine fibroids. Repros Therapeutics Inc (NASDAQ:RPRX) shares are also moving closer to their 200 day simple moving average, which might offer some resistance. Ten funds in our database of 786 elite investors owned slightly over 12% of the company’s float at the end of 2015.
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Follow Repros Therapeutics Inc. (NASDAQ:RPRX)
On the next page we examine why PTC Therapeutics Inc, Office Depot Inc, and Ironwood Pharmaceuticals Inc. are also among the day’s big losers.
