NASH Hype Has These 2 Stocks Soaring, Plus the Latest On MGT Capital, PTC Therapeutics, and Cloud Peak Energy

Cloud Peak Energy Inc. (NYSE:CLD) is 9% in the green today as sentiment around the coal miner improves. Although the coal industry is unquestionably in secular decline, there could be some relief for the sector if Donald Trump becomes President. Given that many polls in crucial swing states like Florida, Ohio, Pennsylvania, and others have tightened in recent weeks, the probability of more favorable government action is higher. If the government rolls back regulations, demand for coal will be stronger than expected and Cloud Peak’s EPS could surprise. Andreas Halvorsen‘s Viking Global established a new stake of over 2.9 million shares in Cloud Peak Energy Inc. (NYSE:CLD) during the second quarter.

Last but not least, NASH-related names Conatus Pharmaceuticals Inc (NASDAQ:CNAT) and Galectin Therapeutics Inc (NASDAQ:GALT) are up by 21% and 12%, respectively today after Allergan plc Ordinary Shares (NYSE:AGN) agreed to buy Tobira Therapeutics Inc (NASDAQ:TBRA) for an upfront cash payment of $28.35 per share, and up to $49.84 per share in Contingent Value Rights that could be unlocked based on the successful completion of certain regulatory, development, and commercial milestones. The total potential consideration of the purchase values Tobira at up to $1.695 billion.

One reason Allergan is buying Tobira is due to the belief that demand for treatments for NASH, an incurable fatty liver disease, will be huge over the coming years. If that is the case, demand for Conatus Pharmaceuticals Inc (NASDAQ:CNAT) and Galectin Therapeutics Inc (NASDAQ:GALT) own NASH products should also be strong, assuming the FDA approves them. According to our records, three funds followed by Insider Monkey were long Galectin at the end of June, while four owned shares of Conatus.

Disclosure: None