Schaeffer's Trading Floor Blog

Biggest Movers: E-Commerce China Dangdang Inc (ADR), Sears Holdings Corp, and Brink's Company

DANG, SHLD, and BCO are making dramatic movements Tuesday afternoon

by 4/15/2014 2:40 PM
Stocks quoted in this article:

As we approach the final minutes of the trading day, three of the top movers are Beijing-based e-commerce name E-Commerce China Dangdang Inc (ADR) (NYSE:DANG), venerable retail name Sears Holdings Corp (NASDAQ:SHLD), and security solutions provider Brink's Company (NYSE:BCO). Here's a quick roundup of how this trio of names is faring on the charts this afternoon.

  • Despite any major news drivers, DANG has dropped 8.6% today to $11.28, but is still hovering just above its 120-day moving average. In late February, the equity bounced off of this trendline. The stock has still more than tripled during the last 12 months, however, and the options crowd still remains pretty committed to the bullish cause. During the last 10 trading days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), nearly 17 calls have been purchased to open for each put, resulting in a 10-day call/put volume ratio of 16.99. This ranks higher than 87% of all readings from the past year, indicating a higher-than-usual relative demand for E Commerce China Dangdang Inc (ADR) long call options.

  • On the sunny side of the Street, SHLD has rallied 6% today to $33.62, after last night announcing a new head of its Sears Home Services unit. Year-to-date, SHLD has had a rough go of it, surrendering roughly 15% of its value. Against this backdrop, analysts have been quick to dismiss (in fact, have outright ignored) shares of the retailer. In fact, just one analyst follows the shares, awarding a tepid "hold" rating. What's more, the standing 12-month price target of $20 is well below the stock's current price, and in territory Sears Holdings Corp has not explored in roughly a decade.

  • BCO shares are sitting with an 11.8% deficit in late-afternoon trading. The company reported it would suffer a first-quarter charge after writing off charges related to the devaluation of the Venezuelan bolivar. What's more, Moody's placed Brink's Company shares under review for possible downgrade. Now perched at $25.20, the shares hit a year-to-date low of $24.85 earlier today and are not far from their annual low of $24.07. The stock has recently become a popular choice among short sellers; during the last reporting period, short interest rose by more than 66%, to a total of 4.6 million shares. It would now take more than 11 trading days (at BCO's average daily volume) to cover all of the outstanding bearish bets.


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