DryShips Hits Back at Lawsuit, While BeiGene Shares Cool Off

Baidu is joining forces with TomTom and Nvidia

Managing Editor
Jul 5, 2017 at 9:59 AM
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U.S. stocks are slightly higher this morning, as investors shake off the rust and return from the Fourth of July holiday. Among specific stocks on the move today are Chinese internet issue Baidu Inc (ADR) (NASDAQ:BIDU), bulk shipper DryShips Inc. (NASDAQ:DRYS), and biopharmaceutical name BeiGene Ltd (ADR) (NASDAQ:BGNE). Here's a quick look at what's moving shares of BIDU, DRYS, and BGNE.

New Partnerships Give BIDU a Boost

Baidu stock is up 1.7% at $183.08, after the company reported two new partnerships -- one with TomTom for computer assisted driving, and the other with Nvidia to expand its artificial intelligence services. It's been a choppy year for U.S.-traded shares of BIDU, which failed on Monday to reclaim a foothold above their 50-day moving average. This trendline has alternately served as both support and resistance this year.

Despite the up-and-down price action in BIDU stock, call buyers continue to flock to the Chinese internet name. BIDU boasts a 10-day call/put volume ratio of 3.40 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 96th percentile of its annual range

DryShips Rallies After Pushing Back on Plaintiff

DryShips stock is up 21.4% in electronic trading at $1.25, after the company said a lawsuit alleging breaches of fiduciary duty is without merit. DRYS added that it will contest the suit -- and a related restraining order and preliminary injunction -- "vigorously." The plaintiff seeks to prohibit DRYS, which has undergone numerous reverse stock splits (most of them voluntary), from issuing new common shares below a specific price threshhold. DRYS stock hit an all-time low of $1.02 on Monday. 

Short sellers, meanwhile, are rooting for the stock to keep spiraling lower. Over 3.14 million shares of DRYS stock are sold short, which accounts for over 31% of the equity's total available float. That's an increase of 75% over the last two reporting periods.

Volatile Morning for BeiGene After Monday's Surge

BeiGene stock is down 2.2% at $53.14, erasing pre-market gains, after the company announced it had begun trials of its bladder cancer drug in China. The biopharma stock is paring some gains after its big rally on Monday, when BGNE popped more than 20% to hit a new all-time high of  $54.47. 

Only a handful of analysts currently track BGNE, but they're unanimously bullish. Thomson Reuters tallies six "buy" or better ratings, with not a single "hold" or "sell" to be found. Meanwhile, the average 12-month price target stands at just $45.75 -- which means these bulls may not be too rattled by this morning's early pullback.

 

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