Red Alert: Five Stocks That Are Getting Bloodied Today

Seadrill Declines 10% on Debt-to-Equity Swap

A few weeks after executing one debt-to-equity swap, Seadrill Ltd (NYSE:SDRL) announced that it will make another one to further cut its debt load. Under the terms of today’s swap, the company will issue 7.5 million new shares in exchange for $50 million principal amount of the 2017 Notes. Seadrill has around $3.7 billion of debt that matures by the end of next year. Shareholders hope that Brent prices will continue to rise so that future potential debt-to-equity swaps are less painful. Jim Simons‘ Renaissance Technologies owned almost 1.5 million shares of Seadrill Ltd (NYSE:SDRL) as of the latest 13F reporting period.

KemPharm Files NDA Amendment Request

KemPharm Inc (NASDAQ:KMPH) is off by almost 5% after the company filed an NDA amendment request for Apadaz, the company’s investigational abuse-deterrent candidate for the short-term management of acute pain. The amendment is aimed at providing the FDA with more data that KemPharm thinks is relevant. The amendment is expected to push back the previously announced target action date for the drug, which was June 9, 2016 (today). Of the hedge funds and other investment firms in Insider Monkey’s database, ten were long KemPharm Inc (NASDAQ:KMPH) at the end of the first quarter, owning 22% of its shares in aggregate.

Freeport-McMoRan Lower on Profit Taking, Oil

Freeport-McMoRan Inc (NYSE:FCX) is 6.8% in the red as some traders take profits off the table from the stock’s big run-up since February. Other traders are selling because WTI spot prices have retreated by 1.5% today. If crude prices run into turbulent conditions as more previously-held-back U.S. production comes onto the marketplace, WTI could decline and exacerbate Freeport-McMoRan Inc (NYSE:FCX)’s debt-to-EBITDA ratios. If crude prices rise, on the other hand, Freeport-McMoRan has more long-term upside left. Carl Icahn‘s Icahn Capital owned 104 million Freeport-McMoRan shares at the end of March.

Disclosure: None