Buzz Stocks: Diamond Foods, Inc., Tesla Motors Inc, and Twitter Inc

Today's stocks to watch include Diamond Foods, Inc. (DMND), Tesla Motors Inc (TSLA), and Twitter Inc (TWTR)

Oct 23, 2015 at 9:21 AM
facebook X logo linkedin


U.S. stocks are set to rally, thanks to encouraging earnings and a rate cut out of China. Among the equities in focus are snack maker Diamond Foods, Inc. (NASDAQ:DMND), electric vehicle titan Tesla Motors Inc (NASDAQ:TSLA), and microblogging concern Twitter Inc (NYSE:TWTR).

  • DMND is pointed 9.7% higher in pre-market trading -- and headed for a three-year peak -- after the New York Post said Kellogg Company (NYSE:K) is in talks to buy the firm for $1.5 billion, or roughly $35 to $40 per share. A bid of $40 per share would represent a premium of 21.8% to DMND's closing price of $32.83 yesterday. Prior to today, DMND had been bumping up against familiar resistance in the $33-$34 region, and a recent crop of option bulls are likely cheering their bets. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Diamond Foods, Inc. sports a 10-day call/put volume ratio of 104.70 -- in the 90th percentile of its annual range.
  • TSLA is up 1.7% pre-market from Thursday's close at $211.72, after CEO Elon Musk said the company could start manufacturing cars in China in two years. Although Tesla Motors Inc shares have underperformed the broader S&P 500 Index (SPX) recently -- with help from a damning Consumer Reports downgrade -- the equity's 14-day Relative Strength Index (RSI) of 34 suggests it's near oversold territory. A rebound could spook quite a few shorts, as short interest accounts for nearly 26% of TSLA's total available float. In fact, it would take more than six days to buy back these bearish bets, at the stock's average daily trading volume.
  • TWTR's new CEO is also making noise this morning. Jack Dorsey said he will give about one-third of his Twitter Inc stake -- representing 1% of the company -- to an equity pool for employees, in order to "reinvest directly in our people." After closing at $29.15 yesterday, the shares of TWTR are pointed 1.8% higher ahead of the bell -- but could find a speed bump in the $30 region, home to their 20-week moving average. Ahead of earnings next Tuesday, option players are picking up bullish bets over bearish at a much faster-than-usual clip, as the security's 10-day ISE/CBOE/PHLX call/put volume ratio of 3.73 stands higher than 96% of all other readings from the past year.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI