The markets are in the red again on Friday as all three major indexes are down by over 1%. Among the stocks trending include Synergy Pharmaceuticals Inc (NASDAQ:SGYP), Tesla Inc (NASDAQ:TSLA),Tencent Holdings Ltd (OTCMKTS:TCTZF),Flex Ltd (NASDAQ:FLEX), Lantronix Inc (NASDAQ:LTRX). Let’s take a closer look at why investors have been watching or selling those stocks.
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Synergy Pharmaceuticals Inc (NASDAQ:SGYP) has fallen almost 70% after the company provided a disappointing business update in which it disclosed projections of TRULANCE total net sales for the year of between $42-$47 million, which according to the company, would ‘be below the minimum revenue covenant of $61.0 million set forth in its term loan agreement with CRG’. This sparked fears among investors that Synergy Pharmaceuticals Inc (NASDAQ:SGYP) would have a funding concern due to the fact that the company would be required to repay the principal and pay prepayment penalties in an amount equal to $38 million to $51 million if the projections were to come to fruition. Mark Kingdon‘s Kingdon Capital reported a stake of 1.4 million shares at the end of June.
Tesla Inc (NASDAQ:TSLA) shares are above $330 again and in the green after the company reported better than expected earnings recently. Shares of Musk’s company have seemingly shaken off the Wall Street Journal’s report that FBI agents are looking into whether the company misstated information concerning Model 3 sedan production and potentially misled the market about the auto maker’s business going back to early last year. Tesla Inc (NASDAQ:TSLA) shares have been on a roller coaster ride of late as Musk tweeted out the infamous ‘funding secured’ statement, only to declare shortly afterwards that Tesla would not go private any time soon. Tesla then reported better than expected earnings and revenue for Q3, which EPS of $2.90 on sales of $6.82 billion, beating the street by $2.93 per share and $770 million. 19 elite funds reported stakes in Tesla in Q2 2018, down from 30 in Q1. We track around 650 elite funds in total.