Although the CBOE Volatility Index is at 14 and crude prices are near their 2016 highs, volatility is of course alive and well among individual stocks. Let’s take a look at some of today’s biggest movers, which includes Foresight Energy LP (NYSE:FELP), Clovis Oncology Inc (NASDAQ:CLVS), Peabody Energy Corporation (NYSE:BTU), Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), and Companhia Siderurgica Nacional (ADR) (NYSE:SID), and examine the reasons investors are buying or selling these stocks today (or are unable to trade them at all). We’ll also examine how the smart money in our database is positioned in the five equities.
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).
Debt Holders Give Foresight Energy More Runway
Foresight Energy LP (NYSE:FELP) has surged by 47% after the company extended the term of an existing forbearance agreement with certain holders of the company’s 7.875% Senior Notes due 2021. As a result, the company’s forbearance period will run through April 15, 2016 and will hopefully provide Foresight Energy LP (NYSE:FELP) with more runway to find a white knight that could save it from declaring bankruptcy. The coal miner has been rumored to be close to a deal where the company’s billionaire founder might inject cash to save the company.
FDA Advisory Committee Gives Clovis’ Rociletinib the Thumbs Down; Investors Continue to Sell the Day After
Clovis Oncology Inc (NASDAQ:CLVS) shares are 7.8% in the red due to follow-on selling a day after the FDA’s Oncologic Drugs Advisory Committee voted 12-to-1 against accelerated approval for Clovis’ rociletinib, which is an investigational therapy for EGFR-positive non-small lung cancer. The committee recommended that the FDA wait to see the results from TIGER-3, Clovis’ ongoing Phase 3 trial of rociletinib, before making a final decision on approval. Patient enrollment for TIGER-3 isn’t expected to be complete until late 2018. If the FDA adopts the committee’s advice, the EGFR-positive non-small lung-cancer indication for rociletinib won’t be possible until 2019 or later. 24 funds in our database held 51% of Clovis Oncology Inc (NASDAQ:CLVS)’s float at the end of 2015. 19.5% of the company’s float is short.
On the next page we examine why Peabody Energy Corporation, Tetraphase Pharmaceuticals, and Companhia Siderurgica Nacional are making headlines today.