Buzz Stocks: Peabody Energy Corporation, Sunedison Inc, and Deutsche Bank AG (USA)

Today's stocks to watch include Peabody Energy Corporation (BTU), Sunedison Inc (SUNE), and Deutsche Bank AG (USA) (DB)

Mar 16, 2016 at 9:31 AM
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U.S. stocks are set to start the day lower, as traders await Fed Chair Janet Yellen's afternoon press conference, which could provide rate-hike timing clues. Among equities in focus are coal stock Peabody Energy Corporation (NYSE:BTU), solar energy interest Sunedison Inc (NYSE:SUNE), and investment banking issue Deutsche Bank AG (USA) (NYSE:DB).

  • BTU is plummeting 52.3% in pre-market trading, after settling at $4.01 on Tuesday. The company said that it may have to file for bankruptcy protection after missing a $71.1 million interest payment. Prior to this week, Peabody Energy Corporation was on the mend, topping the $7 level just weeks after hitting an all-time low of $2.01. However, a downgraded debt rating at Moody's sent BTU lower on Monday, and today the shares are bracing for even lower lows. Option traders had been eyeing an extended rebound recently, buying to open nearly four BTU calls for each put over the last 10 weeks on the International Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) -- a ratio in the 80th percentile of its annual range. But today's price action should make at least one bearish bettor very happy.
  • SUNE is set to slide 15.5% at the bell, after announcing that it missed its already-extended deadline to file its yearly financial report. Sunedison Inc cited "material weaknesses" in internal accounting controls, and has not yet finalized an investigation into the accuracy of its financial outlook. The stock settled at $2.08 on Tuesday, after hitting a 14-year low of $1.21 in late February, and has given up 59% in 2016 beneath resistance at its 10-week moving average. Today's dip could have option bears cheering -- and one trader hoping for a move south of $1.50.
  • DB is pointed 6.6% lower ahead of the open on comments from co-CEO John Cryan, who said that the company is in the process of resolving litigation related to mortgages, and that "this year we're not going to be profitable." Deutsche Bank USA (AG) ended Tuesday at $20.15, down 16.6% year-to-date, but in the midst of a strong comeback since dipping to a record low just over a month ago. Still, the stock's 50-day put/call volume ratio of 4.15 on the ISE, CBOE, and PHLX is higher than 90% of the past year's readings.
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