2 Stocks Reeling After Earnings

KEM stock is among the worst on the Big Board today

Managing Editor
Nov 2, 2017 at 2:36 PM
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Stocks are trading mixed this afternoon, after the Republican tax plan proposal resulted in whipsaw price action. Electronic component producer KEMET Corporation (NYSE:KEM), optical components concern Oclaro Inc (NASDAQ:OCLR), and biotechnology company Riot Blockchain Inc (NASDAQ:RIOT) are making big moves. Here's a quick look at what's moving shares of KEM, OCLR, and RIOT.

KEM Joins List of NYSE Worst After Earnings

KEM made the list of the NYSE's worst stocks today, after reporting preliminary fiscal second-quarter earnings. The stock was last seen 30% lower at $17.29, gapping below the support of its 80-day moving average, which contained the equity's June pullback. The electrical equipment stock has now fallen almost 37% from its mid-October 11-year high, but remains more than 150% higher year-to-date.

Only two analysts follow KEM stock, one carrying a "strong buy" recommendation and the other sporting a tepid "hold" rating. Meanwhile, recent options buyers are likely kicking rocks today. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders bought to open more than four KEM calls for every put during the past two weeks.

Oclaro Stock Tanks on Guidance

OCLR shares are plummeting following a disappointing current-quarter revenue forecast. At last check, the stock was down 24% at $6.08, and just off a fresh 13-month low of $6.00, breaching former support in the $7 region. Oclaro stock received no fewer than five price-target cuts, and one downgrade to "hold" from "buy" at Craig-Hallum. Prior to today, all 10 analysts following OCLR carried "buy" or better recommendations, leaving the door open for additional downgrades.

However, options traders at the ISE, CBOE, and PHLX were more put-heavy than usual toward OCLR stock ahead of earnings. While its 50-day put/call volume ratio of 0.31 indicates calls were favored on an absolute basis, the ratio ranks in the 90th percentile of its annual range. This suggests that options traders bought to open puts over calls at a faster-than-usual clip during the past 10 weeks.

RIOT Erases Bitcoin Rally

Shares of RIOT were up as much as 14.8% earlier, after the company agreed to acquire 1,200 Bitcoin mining machines. Since then, the stock's rally disappeared, and at last check RIOT was down 2% at $6.81. RIOT managed to surge to a two-year high of $9.96 on Oct. 11, and is currently sporting a 210% year-over-year gain.

The stock's short interest has increased 2.3% during the past two reporting periods, and accounts for nearly 6% of the stock's available float, giving RIOT less than a day of buying power from short covering.


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