Schaeffer's Trading Floor Blog

Biggest Movers: Clean Energy Fuels Corp, E-Commerce China Dangdang Inc (ADR), and SunEdison Inc

CLNE, DANG, and SUNE are moving sharply in Thursday's trading

by 5/29/2014 1:44 PM
Stocks quoted in this article:

In afternoon trading, three of the top market movers are natural gas concern Clean Energy Fuels Corp (NASDAQ:CLNE), China-based online media firm E-Commerce China Dangdang Inc (ADR) (NYSE:DANG), and solar energy issue SunEdison Inc (NYSE:SUNE). Here's a quick roundup of how this trio of names is performing on the charts so far.

  • CLNE gapped higher this morning after Morgan Stanley initiated coverage on the shares with an "overweight" opinion. At last check, the stock -- which has outperformed the broader S&P 500 Index (SPX) by 14.5 percentage points in the last month -- was 7% higher at $10.99. Nevertheless, eight out of 10 covering analysts have given Clean Energy Fuels Corp a "hold" or "strong sell" rating, and the equity's 12-month price target of $11.50 is just a chip shot away from its current perch. If that's not enough, one-quarter of CLNE's float is sold short, which would take over eight sessions to buy back, at the average daily trading volume. In other words, additional upside may be on the way, should additional bullish brokerage notes -- or short-covering activity -- come down the pike.

  • DANG is also flying higher this afternoon, up nearly 8% to trade at $10.54, despite a lack of noteworthy news drivers. In fact, since hitting a post-earnings intraday low of $8.98 on May 16, the shares have added more than 17%. Regardless, sentiment is decidedly negative toward the stock. For example, E-Commerce China Dangdang Inc's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.28 sits just 15 percentage points from an annual bearish acme. What's more, short interest on the equity grew 27.4% during the last two reporting periods, and now comprises nearly 16% of DANG's outstanding float. In other words, if the shares continue to run up the charts, an unwinding among option bulls and/or a short-squeeze situation could provide an additional lift.

  • One final equity that's been surging is SUNE, last seen 8.6% higher at $21.15 on news that its "yieldco" subsidiary, TerraForm Power, has filed for an initial public offering. Today's advance only adds to the stock's impressive technical track record; year-over-year, the shares are up more than 175%. Nevertheless, SunEdison Inc's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.56 ranks in the 94th percentile of its annual range, indicating a near-extreme pace of put buying, relative to call buying, in recent weeks. On top of that, almost 28% of the equity's float is sold short, which represents close to a week's worth of pent-up buying power, at SUNE's average daily trading volume. Suffice it to say, a mass exodus of option bears and/or covering activity among short sellers could provide the stock with tailwinds.

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