Buzz Stocks: Alibaba, Juniper Networks, Halozyme

Today's stocks to watch in the news include BABA, JNPR, and HALO

Nov 11, 2014 at 9:13 AM
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U.S. stocks are set to extend their record-setting run to a fifth straight session. Among the equities making early headlines are Chinese e-commerce concern Alibaba Group Holding Ltd (NYSE:BABA), IT issue Juniper Networks, Inc. (NYSE:JNPR), and drugmaker Halozyme Therapeutics, Inc. (NASDAQ:HALO).

  • BABA said its annual "Singles Day" (11/11) shopping event has already generated more than $6 billion in goods sold, blowing past last year's record. The Wall Street freshman has already surged more than 20.8% in November, and touched an all-time high of $119.45 yesterday, before settling at $119.15. BABA has spent the past six sessions exploring uncharted waters, bringing its 14-day Relative Strength Index (RSI) to a lofty 82 -- in overbought territory, suggesting a breather could be in the short-term cards. In fact, Alibaba Group Holding Ltd shares are pointed 1.5% lower ahead of the bell, as it appears some bulls -- and there are plenty of them -- may be cashing in their chips.

  • JNPR last night announced the resignation of CEO Shaygan Kheradpir (subscription required), following a board review of his conduct in the wake of a negotiation with a customer, and named Rami Rahim as his replacement. However, Juniper Networks, Inc. executives didn't go into detail about the surprise departure, leading to much speculation on the Street. Analysts at Nomura are optimistic, though, upgrading JNPR to "buy." On the charts, JNPR has shed 4.7% in 2014, landing at $21.50 on Monday. Option traders are betting on more downside; on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.20 stands higher than 84% of all other readings from the past year, pointing to a healthier-than-usual appetite for long puts over calls of late. As such, the stock's Schaeffer's put/call open interest ratio (SOIR) rests at 1.01 -- within 3 percentage points of a 12-month peak, suggesting short-term traders have rarely been more put-biased during the past year.

  • Finally, HALO is headed 11% lower, after the company reported weaker-than-expected third-quarter earnings. Furthermore, Halozyme Therapeutics, Inc. said the Food and Drug Administration may ask for more data on its key Type 1 diabetes treatment, which could result in a delay of sales and higher projected costs for the drug. HALO has already surrendered nearly 38% in 2014, settling at $9.32 on Monday. While JMP Securities this morning cut its price target on HALO to $10 from $12, the brokerage firm maintained a "market outperform" rating -- par for the course for a stock that boasts four "strong buys" compared to one "sell." However, options traders are likely cheering the earnings miss, as the stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 3.08 ranks in the 99th annual percentile.


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