Why These Five Stocks Are Deep in Red on Tuesday?

Shares of California Resources Corp (NYSE:CRC) are down by approximately 15%. The stock has been losing ground lately amid an announcement by Levi & Korsinsky, a fraud investigation firm, that it has commenced an investigation of California Resources regarding a possible violation of federal securities laws by the company in its treatment of certain debtholders. In this way, California Resources Corp (NYSE:CRC) stock has plummeted by around 50.63% over the past three weeks. Among the investors we track, 29 held shares of California Resources heading into 2016, having amassed 26.20% of the company’s stock. Eric W. Mandelblatt’s Soroban Capital Partners owns 33.45 million shares of California Resources Corp as of the end of the last year.

Seadrill Ltd (NYSE:SDRL) is down by approximately 9% on Tuesday morning, amid a decline in oil prices fueled by uncertainty and fears of an oversupply. Oil prices have rallied in recent weeks following reports that large producers might freeze their production, but analysts and traders still have concerns that the glut is too high to support the prices of around $40 a barrel. An important meeting of major oil producers is set to take place in Doha, Qatar, month, where producers might agree to cap the production, but the denial of Iran to take part in the talks minimizes the chances of an improvement in oil prices. A total of 21 of the funds we track at Insider Monkey held positions in Seadrill at the end of 2015, down from 23 funds a quarter earlier. The total value of their holdings came down to around $57.95 million from $108.92 million quarter-over-quarter. ArrowStreet Capital owns approximately 4 million shares of the company, according to its last 13F filing.

Medivation Inc (NASDAQ:MDVN)’s stock has lost some 13% on Tuesday on the back of reports that the company is targeted by lawmakers over the pricing of its prostate cancer drug Xtandi. The Department of Health and Human Services and National Institutes of Health were requested to urge the company to reduce the cost of the drug, on the basis that it costs lower outside the US. A total of 34 investors tracked by Insider Monkey held long positions in Medivation at the end of the last year, unchanged over the quarter, but the aggregate value of their holdings inched up to $138.8 million from $115.7 million. Fred Knoll’s Knoll Capital Management owns approximately 4 million shares of the company as of the end of 2015.

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