The Dow Jones index is flat and the S&P 500 and NASDAQ index are modestly in the red, amid reports that the International Monetary Fund cut its global growth outlook for the next two years on the back of Brexit-related uncertainty in the European Union. The IMF now forecasts a global growth of 3.1% this year and 3.4% in 2017, both figures having been cut by 0.1 percentage points.
Meanwhile, five companies, SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN), Ryerson Holding Corp (NYSE:RYI), Skypeople Fruit Juice Inc (NASDAQ:SPU), Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), and Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) are registering declines significantly below the market. In this article, we analyze why traders are selling and see what the funds that we track at Insider Monkey think about the companies in question.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. 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).
SciClone Updates on Strategic Review
SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) shares have retreated by 16% today after the company provided an update on its strategic review process previously announced in February. According to the update, SciClone is ‘no longer continuing active discussions with potential acquirers’ and SciClone plans to remain an independent company. None of the bids under discussion during the strategic review process with interested parties were at a premium to the SciClone’s recent unaffected trading price. For 2016, management expects non-GAAP EPS of $0.70 to $0.74 on revenue of $158 million to $163 million. Jim Simons’ Renaissance Technologies raised its stake in SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) by 60% to 932,300 shares during the first quarter.
Ryerson Drops on Offering
Ryerson Holding Corp (NYSE:RYI) is almost 12% in the red today after the company commenced an underwritten public offering of 5 million shares of common stock. The company has also granted the underwriters the customary 30 day option to buy an additional 750,000 shares. Ryerson intends to use the net proceeds to reduce debt. Just three funds from our database owned $2.52 million worth of Ryerson Holding Corp (NYSE:RYI) shares, which accounted for 1.40% of the float on March 31.
On the next page, we find out why traders are selling Skypeople Fruit Juice, Ballard Power Systems, and Telefonaktiebolaget LM Ericsson.