BUY, SELL, HOLD (2)

Buzz Stocks: Groupon, Cheniere Energy, and Himax

Today's stocks to watch in the news include Groupon Inc (GRPN), Cheniere Energy, Inc. (LNG), and Himax Technologies, Inc. (ADR) (HIMX)

Aug 7, 2015 at 10:02 AM
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U.S. stocks are lower in early morning trading, as traders digest today's nonfarm payrolls report. Among the equities in focus are online discounter Groupon Inc (NASDAQ:GRPN), natural gas concern Cheniere Energy, Inc. (NYSEMKT:LNG), and semiconductor firm Himax Technologies, Inc. (ADR) (NASDAQ:HIMX).

  • Heading into today, GRPN had already dropped 43.3% in 2015, with recent rally attempts cut off by its 32-day moving average. This morning, the stock is another 3.6% lower at $4.51 -- and earlier touched a two-year low of $4.38 -- after the company's second-quarter sales fell short of analysts' expectations. The firm also offered up downbeat revenue guidance. This is likely a letdown for GRPN's recent batch of call buyers. During the past 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Groupon Inc options traders have bought to open 5.24 calls for every put -- a ratio that ranks in the 73rd annual percentile.

  • LNG  is getting a lift in early trading thanks to news high-profile investor Carl Icahn has taken an 8.2% stake in the company, saying the shares are undervalued. Plus, Icahn may be interested in seats on the company's board. The shares have added 6.2% today to land at $68.81. While Cheniere Energy, Inc. still faces a 2% year-to-date deficit, short sellers can't be pleased with today's price movement. Short interest on LNG jumped 13.4% during the two most recent reporting periods, and now represents 11.4% of the stock's float. At LNG's average daily trading pace, it would take bears over six sessions to buy back all the shorted shares. 

  • Despite a second-quarter sales miss and weak full-year outlookHIMX is up 3.6% today at $7.00. This is a break from the norm, as the equity has underperformed the S&P 500 Index (SPX) by 21 percentage points during the past 20 sessions. Meanwhile, analysts are mixed on Himax Technologies, Inc. Currently, half of the brokerage firms tracking the stock say it's a "strong buy,"  with the other half doling out "hold" or worse opinions.

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