3 Stocks Set for Worst Session of 2018

Penny stocks CLNE and AMSC are getting crushed today

Jul 5, 2018 at 2:20 PM
facebook twitter linkedin

The Dow is higher today amid hopes of a tariff truce between the U.S. and Europe. Three stocks bucking the broad-market tailwinds, however, are media concern TiVo Corp (NASDAQ:TIVO), natural gas supplier Clean Energy Fuels Corp (NASDAQ:CLNE), and power technology issue American Superconductor Corporation (NASDAQ:AMSC). Below, we will take a closer look at how shares of TIVO, CLNE, and AMSC are trading on the charts.

CEO Resignation Rocks TIVO Stock

After less than a year in the position, Enrique Rodriguez is stepping down as TiVo CEO, in order to be Chief Technology Officer at Liberty Global (LBTYA). TiVo named Raghu Rau interim CEO, and said it will provide an update on its exploration of strategic alternatives -- announced in late February -- on its second-quarter earnings call, tentatively scheduled for early August.

TIVO stock was last seen 4.7% lower to trade at $13.20, set for its worst day since mid-December. The equity has been range-bound for most of 2018, finding support in the $13 area and resistance in the $15-$15.50 neighborhood. TIVO options traders appear to be betting on a quick bounce, with calls trading at eight times the average intraday pace. Digging deeper, the August 15 call is most active, with more than 4,000 contracts exchanged. It appears the speculators are buying the calls to open, hoping for a rebound north of $15 by August options expiration.

Analyst Downgrade Drops CLNE Shares

Shares of Clean Energy Fuels are down 14.9% to trade at $3.16, set for their worst session since early November. Weighing on CLNE is a downgrade to "underperform" from "market perform" at Raymond James, which said the company's partnership with France's Total sparked "excessive euphoria." The analyst also said the growing popularity of electric buses could be a headwind for CLNE.

Just last week, the penny stock notched an annual high of $4.04, but today is set to end beneath its 20-day moving average for the first time since late April. Although absolute volume is light, the nearly 600 CLNE put options traded so far today is four times the average intraday volume. It appears some traders may be buying to open the July 3 put, expecting Clean Energy shares to extend their retreat and breach $3 in the short term.

Sinovel Settlement Sends AMSC Stock Reeling

American Superconductor stock is down 16.4% to trade at $5.90, on pace for its worst session since May 2017. AMSC traders are apparently jeering the company's settlement with China's Sinovel Wind Group, which calls for the latter to pay the former roughly $57.5 million in two installments. In January, Sinovel was convicted of stealing American Superconductor trade secrets, with a U.S. court expected to sentence the Chinese firm tomorrow.

AMSC stock touched a fresh annual high of $8.03 on June 27, but today is set to end beneath its 50-day moving average for the first time since Jan. 2. While the equity is now on the short-sale restricted list, quite a few bears are likely cheering the drop. Short interest on AMSC jumped more than 15% in the most recent reporting period, and now accounts for more than 21% of the security's total available float.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners