Buzz Stocks: Ambarella Inc, FuelCell Energy Inc, and Big Lots, Inc.

Today's stocks to watch include Ambarella Inc (AMBA), FuelCell Energy Inc (FCEL), and Big Lots, Inc. (BIG)

Dec 4, 2015 at 9:29 AM
facebook twitter linkedin

U.S. stocks are poised to bounce back from yesterday's losses on a strong jobs report, which makes a rate hike this month almost certain. Among the equities in focus are chipmaker Ambarella Inc (NASDAQ:AMBA), energy interest FuelCell Energy Inc (NASDAQ:FCEL), and discount retailer Big Lots, Inc. (NYSE:BIG).

  • AMBA is pointed 4.1% lower ahead of the open, after closing at $57.88 on Thursday. The company announced third-quarter financial results, which included both earnings and revenue above analysts' expectations. However, Ambarella Inc gave a disappointing sales outlook for the fourth quarter, causing investors concern. The stock has given up 55% of its value since hitting its all-time high of $129.19 in July -- and though seven out of 12 analysts still give AMBA a "strong buy" rating, many have recently slashed their price targets, with six of these negative notes hitting the wires this morning. Short interest is heavy on the security, too, as more than 45% of the available float is sold short -- accounting for nearly six times the stock's average daily volume.
  • FCEL last night announced a 1-for-12 reverse stock split, which means investors holding shares of FuelCell Energy Inc will now hold one-twelfth the number of shares. Short interest is high, with 14% of the total float sold short -- representing nearly 19 times FCEL's average daily trading volume. Before the reverse split became effective, the stock, which has lost more than 95% of its value in 2015, closed Thursday at $0.82; currently, FCEL is set to open at $9.79, up 1.9% on a split-adjusted basis. 
  • BIG is set to drop 4% from Thursday's close of $42.74, reversing earlier pre-market gains, despite reporting quarterly earnings that matched expectations. Big Lots, Inc. has gained 6.8% so far this year, and 10 out of 14 brokerages following the stock give it a "strong buy" rating. Traders have been betting heavily against BIG, though. Nearly one-fifth of the stock's available float is sold short -- an amount that would take almost 13 days of trading to buy back. And on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 6.05 is higher than 88% of readings from the last 12 months -- indicating a particularly strong appetite for put-buying in recent weeks.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners