The markets are trading in the negative territory, owing to uncertainties associated with ongoing earnings season. Alcoa announced disappointing results while Bank of America has issued warning that stock prices are close to ‘tech bubble’ levels.
However, there are several stocks which are showing significant uptick in the current session. Among these stocks are Biostar Pharmaceuticals Inc. (NASDAQ:BSPM), Nova Lifestyle Inc. (NASDAQ:NVFY), Carbonite Inc. (NASDAQ:CARB), KemPharm Inc. (NASDAQ:KMPH), and Straight Path Communications Inc. (NYSEMKT:STRP). This article will explore the news behind these stocks and will assess the hedge fund sentiment towards them.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
Biostar Pharmaceuticals Inc. (NASDAQ:BSPM) stock climbed 33% higher in the current trading session as the company announced the launch of its new product for treating effects of Sinusitis and Rhinitis. The topical health product is called “Easy Breathing” and will be released in China in November. Biostar Pharmaceuticals expects to sell nearly 400,000 units within the next two years, and expects to generate $7.5 million in revenue. Jim Simons’ Renaissance Technologies held 105,956 shares of Biostar Pharmaceuticals Inc. (NASDAQ:BSPM), valued at $468,000 at the end of June.
Nova Lifestyle Inc. (NASDAQ:NVFY) stock has gained 21% after the company announced signing a new framework agreement with a Hong Kong and Malaysian company, The Future Biz School, for the supply of goods. The deal is expected to be worth $15 million per year and will involve supplying US made mattresses and other products. In other news, the company also said that its CEO Ya Ming “Jeffrey” Wong had resigned and will be replaced by president Tawny Lam, who will serve as interim CEO. None of the funds tracked by us held shares of Nova Lifestyle Inc. (NASDAQ:NVFY) at the end of the second quarter.
Carbonite Inc. (NASDAQ:CARB)’s stock is trading over 6% in the green after Oppenheimer Holdings upgraded the stock to ‘Outperform’ from ‘Market Perform.’ The analysts cited “substantial upside” from the current levels due to fundamentals and valuation, among reasons for the upgrade and stated that the company’s cost saving plans and eVault growth plan are not fully incorporated by the markets. Oppenheimer has a $21 price target on the stock. A total of 23 funds from our database have positions in Carbonite as of the end of June, up from 16 funds a quarter earlier. The total value of their holdings advanced to $84 million from $67 million during the second quarter and amassed 32.30% of Carbonite Inc. (NASDAQ:CARB)’s outstanding stock.
KemPharm Inc. (NASDAQ:KMPH) stock jumped 9% on the back of the company receiving FDA clearance for starting clinical program for KP415, an investigational New Drug designed for treating attention deficit hyperactivity disorder. The company plans to start and complete proof of concept human trials before the end of 2016. It also plans to conduct additional human clinical trials during the first half of 2017. Among the funds we track, James E. Flynn’s Deerfield Management, Steve Cohen’s Point72 Asset Management, and Anand Parekh’s Alyeska Investment held shares of KemPharm stock in their portfolios at the end of June.
Straight Path Communications Inc. (NYSEMKT:STRP) stock is trading 7% higher after the company announced that its spectrum will be used by Windstream for expanding fixed wireless technology in 40 markets. Straight Path Communications is the largest licensed millimeter wave spectrum holder in the US. The company officials said that the strategic deal will help the company in unlocking its potential in millimeter wave segment. Eight funds from our database hold about $17 million worth of Straight Path Communications stock as of the end of June, compared to seven funds and $15.8 million, respectively, a quarter earlier.
DISCLOSURE – NONE