This earnings season hasn’t been very eventful in terms of volatility. The S&P 500 is roughly flat, while the Dow Jones is up by a mere 27 points. While the broader indexes are quiet, five individual stocks, Synaptics, Incorporated (NASDAQ:SYNA), COPsync Inc (NASDAQ:COYN), DragonWave, Inc.(USA) (NASDAQ:DRWI), Nu Skin Enterprises, Inc. (NYSE:NUS), and ExOne Co (NASDAQ:XONE), are surging. Let’s analyze the factors causing these surges and see how the smart money is positioned in each stock.
Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on can generate monthly returns nearly 1.0 percentage points above the market (see the details here).
Buyout Talks Continue for Synaptics
Synaptics, Incorporated (NASDAQ:SYNA) is 10.7% in the green this morning after Bloomberg reported that the company is still in ‘active discussions with a state-backed Chinese investment group’ that might value the company at around $110 per share. According to the article, Synaptics is pushing for a deal announcement by the end of April. There is no guarantee that the deal will come to fruition, however, or that it won’t be delayed at the very least. The number of elite funds in our database with holdings in Synaptics, Incorporated (NASDAQ:SYNA) fell by five during the fourth quarter to 13 as of the end of December.
Nano-cap Rallies on Agreement
COPsync Inc (NASDAQ:COYN) shares have surged by 18% this morning after the company announced a joint technology development agreement with LIFEWatch USA wherein the two will develop and commercialize a hand-held device tentatively named the COPsync Beacon, which could be used to remotely trigger a COPsync911 alert. COPsync CEO Ronald Woessner had this to say about the deal:
“We cannot think of a better company to work with than LIFEWatch USA for adding a remote device alert capability to the COPsync911 threat-alert system. In addition to combining our respective competencies, we expect the extensive LIFEWatch USA distribution channel will help us leverage our sales capabilities and expose the COPsync911 threat-alert system to a larger population of potential buyers. We look forward to working together with one of the most recognized American brands that have provided the medical alert services as seen on TV for the last 20 years.”
None of the funds tracked by Insider Monkey held shares of COPsync Inc (NASDAQ:COYN) as of December 31, according to SEC filings. As with all nano-cap stocks, investors should exercise due diligence before investing.
On the next page we examine why DragonWave Inc, Nu Skin Enterprises, and ExOne Co are all rising high today.