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.

Investors Are Abuzz About These 4 Stocks Today; Here’s Why

Four stocks are making big waves among investors today, as they put up strong gains on high trading volume. The gains come as a respite for two in particular, Allergan plc (NYSE:AGN) and MGM Resorts International (NYSE:MGM), which have struggled lately amid broader industry concerns. We’ll look at the news behind their gains, as well as the news pushing Noble Corp plc (NYSE:NE) and Echo Global Logistics, Inc. (NASDAQ:ECHO) higher today as well.


BeautyStockPhoto /

Let’s start with Allergan plc (NYSE:AGN), the most popular stock in the world among the 730 or so elite investors that we monitor. After being halted for 45 minutes at the start of trading this morning, shares are up by more than 7% after Allergan announced that it has entered into friendly preliminary discussions to merge with pharmaceutical giant Pfizer Inc. (NYSE:PFE). It’s believed that Pfizer Inc. (NYSE:PFE) may find such a deal attractive so as to move its tax jurisdiction from the more-heavily taxed U.S to the lightly-taxed Ireland, where botox-maker Allergan is based. Shares of Pfizer Inc. (NYSE:PFE) are down by over 2% today.

Follow Allergan Inc (NYSE:AGN)
Trade (NYSE:AGN) Now!

If a deal were to be worked out, it would be the latest high-profile merger for the former Actavis, which completed its merger with Allergan and adopted that company’s name earlier this year. Actavis further stated that its deal to divest its generics business to Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA), which is not expected to be completed until 2016, would not be affected by any merger with Pfizer. 151 investors in our database held over $20.72 billion worth of Allergan plc (NYSE:AGN) shares on June 30, 17.40% of the firm’s outstanding shares. Pfizer was less popular, with 85 investors holding just 2.30% of its common stock as of June 30, worth $4.66 billion. Phill Gross and Robert Atchinson‘s Adage Capital Management holds a large stake in both healthcare stocks.

Follow Pfizer Inc (NYSE:PFE)
Trade (NYSE:PFE) Now!

Whether elite hedge funds collectively like a stock or not is an important metric to consider, as these large investors show a great level of skill and expertise when it comes to picking stocks. Over the last few years equity hedge funds have trailed the market by a large margin, but that’s mostly due to their hedging and short positions, which perform poorly in a bull market. Their long positions performed far better, especially their small-cap picks, which have the potential to beat the market by 95 basis points per month on average, as our backtests showed. Our small-cap strategy involves imitating a portfolio of the 15 most popular small-cap picks among hedge funds and it has returned 102% since August 2012, beating the S&P 500 ETF (SPY) by over 53 percentage points (read more details here).

MGM Resorts International (NYSE:MGM) is up by 4.87% today after the casino operator announced that it would spin off ten of its properties into a real estate investment trust (REIT), including seven properties in Las Vegas (The Mirage, Mandalay Bay, Monte Carlo, New York-New York, Luxor, Excalibur and The Park). The move comes after months of pressure from activist investor Jonathan Litt of Land and Buildings, who fought an unsuccessful proxy fight against MGM Resorts earlier this year, but continued to call on MGM to make such a restructuring move to increase shareholder value after that defeat. Spinning off properties into an REIT has been a popular move of late to maximize the value of company’s assets, with Darden Restaurants, Inc. (NYSE:DRI), Macy’s, Inc. (NYSE:M), and Sears Holdings Corporation (NASDAQ:SHLD) all undertaking such moves, which has drawn the attention of the IRS. Litt believes MGM has a net asset value of at least $30 per share, which suggests considerable remaining upside with shares trading at just $22.64 at present. 58 investors that we track agree, holding stakes in MGM Resorts as of June 30 that amassed 16.90% of its shares. MGM expects the spinoff to be completed in the first quarter of 2016 and will manage the REIT once the move is complete.

Follow Mgm Resorts International (NYSE:MGM)
Trade (NYSE:MGM) Now!

We’ll cover the other two stocks that are trending upward on the following page.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.