Although Peabody Energy Corporation (NYSE:BTU), one of the largest coal miners in the world, filed for bankruptcy today, shares of commodity related companies Joy Global Inc. (NYSE:JOY), Capstone Turbine Corporation (NASDAQ:CPST), Seadrill Ltd (NYSE:SDRL), and Ocean Rig UDW Inc (NASDAQ:ORIG) have surged, as have those of semiconductor company, Lattice Semiconductor (NASDAQ:LSCC). Let’s take a closer look and see why these stocks are posting big gains today and what top hedge funds think of each stock.
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A Mining Equipment Maker Surges; Investors Brush Off the Peabody Bankruptcy
Leading off our list of gainers is Joy Global Inc. (NYSE:JOY), whose shares have surged by more than 15% on the back of rising commodity prices. Natural gas spot futures are 2% higher and copper prices are 1% higher this afternoon as investors become more optimistic about the global economy. Joy Global makes mining equipment that will be more in demand if copper and coal prices rise. Investors have accordingly piled into the stock, despite Peabody Energy declaring bankruptcy today and despite analysts at JPMorgan warning that valuations in the machinery sector might be a little stretched.
24 funds in our database owned $228.8 million worth of Joy Global Inc. (NYSE:JOY)’s shares on December 31, with those figures down slightly from 28 funds holding positions valued at $254.33 million on September 30. Jim Simons‘ Renaissance Technologies reported a holding of approximately 1.5 million shares as of the end of 2015.
The Chinese Semi-Conductor Grab Continues
Lattice Semiconductor (NASDAQ:LSCC) shares are almost 20% in the green this afternoon after China’s Tsinghua Unigroup revealed today that it has a 6% stake in the company. Tsinghua also said in a regulatory filing that the company might enter into discussions about a potential commercial agreement. Some bullish traders are interpreting the purchase as a prelude to potentially more buying from Tsinghua. If history is a guide, national security scrutiny might get in the way of an outright acquisition, however. Ken Hahn‘s Quentec Asset Management was among 11 elite funds in our database that owned a cumulative 6.5% of Lattice Semiconductor (NASDAQ:LSCC)’s shares at the end of the fourth quarter.
On the next page, we examine why Capstone Turbine Corporation, Seadrill Ltd, and Ocean Rig UDW are witnessing positive sentiment today.