Buzz Stocks: Apple, RadioShack Corp, and dELiA's

Today's stocks to watch in the news are AAPL, RSH, and DLIA

Dec 5, 2014 at 9:32 AM
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Markets are higher at the open, as traders digest the details of the Labor Department's payrolls report. Meanwhile, among specific equities in focus are tech titan Apple Inc. (NASDAQ:AAPL), as well as retailers RadioShack Corporation (NYSE:RSH) and dELiA*s, Inc. (NASDAQ:DLIA).

  • Since hitting an intraday low of $111.27 during Monday's "flash crash," shares of AAPL have bounced back 3.8% -- and closed last night at $115.49. The stock is on pace to add to these gains today, on reports the company's $1 billion anti-competition lawsuit could be tossed out . Along similar lines, Samsung has requested a U.S. appeals court to dismiss the $930 million infringement case between the two smartphone makers. On the sentiment front, short-term speculators have shown a distinct preference for AAPL puts over calls, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.06, which ranks in the 95th annual percentile. Should the equity continue its upward momentum, a capitulation among bearish option traders could add fuel to Apple Inc.'s fire.

  • RSH's struggles both on and off the charts have been fodder for the Street for some time now. Yesterday, the shares closed at $0.59 -- more than 77% below where they started the year. What's more, the stock hasn't traded north of the dollar mark on an intraday basis since Nov. 5. Off the charts, the company said it is asking lenders to defer claims of a $250 million loan default through the holiday season. Additionally, as a means of cutting costs, RadioShack Corporation will stop matching its employees 401(k) and 1165(e) plans in early February. Against this dismal backdrop, it's no surprise to see that all eight of the analysts covering the shares maintain a "hold" or "strong sell" rating. Plus the consensus 12-month price target rests at just $0.58.

  • Even worse off than RSH is DLIA, which plunged 82% out of the gate into penny-stock territory, after the teen retailer said it will file for Chapter 11 bankruptcy protection, and begin to liquidate its assets. Heading into today's session, the shares were down 86.7%, and settled Thursday at $0.12. This negative price action has likely been music to the ears of one group of traders -- short sellers. Short interest accounts for nearly 29% of the stock's available float.


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