XOMA Soars on Licensing Deals; TAHO Tanks On Court Ruling

Tahoe Resources stock is trading at record lows, as its top mine operations remain halted

Aug 25, 2017 at 3:02 PM
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U.S. stocks are trading higher this afternoon, as markets process comments made by Fed Chair Janet Yellen. Among the stocks in the spotlight today are drug developer XOMA Corporation (NASDAQ:XOMA), mineral exploration company Tahoe Resources Inc (NYSE:TAHO), and social media giant Twitter Inc (NYSE:TWTR). Here's a quick look at what's moving shares of XOMA, TAHO, and TWTR.

XOMA Soars on Licensing Deals

XOMA stock is up 27% to trade at $11.35, after the company announced two licensing agreements with Swiss pharmaceutical company Novartis. XOMA CEO Jim Neal said the agreements -- which will give Novartis the commercial rights and intellectual property to two of XOMA's drugs -- eliminate almost half of the company's outstanding debt.

Up 169% year-to-date, the biotech stock is poised to close above its 80-week moving average for the first time since July 2015. XOMA now ranks among today's best stocks on the Nasdaq, and a short squeeze could help its shares climb even higher. Short interest represents more than 14% of XOMA's total available float. At the equity's average daily trading volume, it would take more than a month to buy back the shorted shares.

Tahoe Stock Tanks After Guatemalan Court Upholds Ruling

Moving in the opposite direction is Tahoe Resources stock -- last seen down 17.8% to trade at $4.51 -- after reports that Guatemala's constitutional court upheld a lower court's decision to provisionally halt operations at one of the world's largest silver mines. Earlier, TAHO touched a record low of $4.27, and is now down 52% year-to-date. 

Today's plunge ranks TAHO as the worst stock on the New York Stock Exchange (NYSE). Some bears jumped ship too early, as short interest on TAHO decreased 10.2% during the last two reporting periods. Today, however, TAHO is on the short sale restricted (SSR) list.

Jefferies: There's a 'Clear Winner' in Social Media -- And It's Not TWTR

Shares of Twitter stock are down 1.6% to trade at $16.63, after Jefferies downgraded the stock to "hold" from "buy," and cut its price target to $16 from $20, citing Facebook as the "clear winner" in social media. TWTR stock has struggled to climb back from an ugly earnings reactions, which led to its steep July 27 bear gap. The shares are now staring up at their formerly supportive 80- and 200-day moving averages.

Jefferies isn't alone in its tepid opinion of Twitter shares. Of the 24 analysts following the stock,13 rate it a "hold," and 10 more rate it a "sell" or worse. In fact, not one analysts deems TWTR worthy of a "buy" rating.


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