JVA Jolts Higher on Cannabis Coffee Talks; Analyst Warns on GE

Plus, a biotech stock up over 260%

by Patrick Martin

Published on Jan 29, 2019 at 2:44 PM

Stocks are mixed today, with the Dow higher but the Nasdaq in the red amid a tech stock pullback. Former Dow name General Electric Company (NYSE:GE) is struggling, but small-cap stocks Coffee Holding Co., Inc. (NASDAQ:JVA) and biotech name OncoCyte Corp (NYSEAMERICAN:OCX) are enjoying breakout days. Below, we'll take a look at what's moving the shares of GE, JVA, and OCX.

Analyst: GE Offers "Unfavorable Risk/Reward"

General Electric stock is down 2.3% to trade at $8.72, after J.P. Morgan Securities urged caution ahead of the company's fourth-quarter earnings report on Thursday. The analyst, Stephen Tusa, views an "unfavorable risk/reward" setup for GE ahead of earnings, and outlined "a myriad" of questions that execs need to answer on the company's earnings conference call this Thursday, Jan. 31.

Despite the drop today, GE still boasts a 15% gain in 2019, and it's added about 31% since touching a record low of $6.66 in mid-December. However, GE's recent upside momentum has encountered stiff resistance at its 80-day moving average.

Considering the stock has dropped after its last two earnings reports -- including a one-day dip of 8.8% in late October -- it's no surprise the options pits favor puts. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows GE with a 10-day put/call volume ratio that ranks 1 percentage point from an annual high, meaning puts have been bought to open over calls at a quicker-than-usual clip ahead of earnings.

JVA Stays Hot in 2019 With Cannabis Coffee 

Coffee Holding stock is up 15.2% to trade at $5.60, after the company announced it was exploring potential partners to develop cannabidiol (CBD) infused coffee. CEO Andrew Gordon said the firm is exploring "the best applications for CBD for both existing and potential new products."

JVA earlier nabbed a four-year high of $6.34, and has extended its year-to-date gain to 60%. In fact, after falling to an annual low of $3.54 on Dec. 31, the shares have only turned in five negative sessions in 2019. 

Cancer Drug Breakthrough Powers OCX's Best Day Ever

OncoCyte stock is up 267% to trade at $6.68, after the biotech company reported positive results from its research and development study on DetermaVu, a liquid biopsy test for lung cancer detection. After closing at just $1.82 yesterday, this is set to be OCX's best single-session gain ever. In response, Janney raised its outlook on the stock to "buy," while upping its price target to $8. Lake Street Capital Management, meanwhile, reiterated its "buy" endorsement and hiked its target to $7.


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