After opening well in the green, all three indexes are now close to flat as traders weigh various bits of macro-economic data. Although the U.S. economy is strong, the Chinese and European economies are tepid at best and could slow even further if various events occur.
In this article, we examine four technology stocks that are commanding attention, as well as one big pharma equity, Oracle Corporation (NYSE:ORCL), NetSuite Inc (NYSE:N), SolarCity Corp (NASDAQ:SCTY), Tesla Motors Inc (NASDAQ:TSLA), and Pfizer Inc. (NYSE:PFE). We will also find out what the smart money thinks of the five stocks using the latest 13F regulatory filings.
At Insider Monkey, we track around 740 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
According to CNBC, Oracle Corporation (NYSE:ORCL)‘s tender offer for NetSuite Inc (NYSE:N) ending on October 6 is running into some opposition from institutions such as T. Row Price, which would rather have NetSuite remain independent given Oracle’s current offer price of $109 in cash per share. Due to the holdouts, the minimal condition of the tender hasn’t been met yet. If enough shareholders don’t tender their shares, Oracle would either have to nix the deal or to raise its offer. Based on market action, NetSuite shareholders think Oracle will probably raise its price given that NetSuite shares are trading for $109.88 at the moment. Of the around 749 top funds that we track, 53 held shares of Oracle Corporation (NYSE:ORCL) and 18 were long NetSuite Inc (NYSE:N) at the end of June.
SolarCity Corp (NASDAQ:SCTY) is 1% in the green after the company announced that it has partnered with the investment bank Citi to create two funds that will fund over $347 million in solar projects. In conjunction, SolarCity has named Radford Small to the position of CFO to the company. Whether that will be a long term or short term position will depend on how shareholders vote in the upcoming election concerning the SolarCity/Tesla merger. Kenneth Tropin‘s Graham Capital Management trimmed its stake by 6% in the second quarter to 16.5 million shares in SolarCity Corp (NASDAQ:SCTY) at the end of June.
On the next page, we find out why Tesla Motors, and Pfizer are in the news.
Tesla Motors Inc (NASDAQ:TSLA) is in the spotlight after Ben Kallo, analyst at Baird, wrote that he expects Elon Musk’s company to report 21,000 deliveries for the third quarter around early next week. That number includes 9,000 Model X deliveries and 12,000 Model S deliveries. Although any number above 20,000 could be positive, negative sentiment could rear its head again shortly after the announcement due to the company’s impending potential merger with SolarCity. Baird has a $338 price target and an ‘Outperform’ rating on the stock. A total of 36 investors tracked by us owned shares of Tesla Motors Inc (NASDAQ:TSLA) at the end of June, down by three funds from the previous quarter.
Pfizer Inc. (NYSE:PFE) has officially closed its purchase of Medivation, which it agreed to buy for $81.5 in cash per share, for a total enterprise value of $14 billion. Medivation has a leading position in oncology, and Pfizer’s management continues to expect the purchase to be $0.05 accretive to adjusted EPS in the first full year and for additional growth and accretion after that. The number of funds from our database with holdings in Pfizer Inc. (NYSE:PFE) fell by 25 quarter-over-quarter to 94 at the end of June.