Stocks To Watch: Groupon, Molycorp, Whole Foods...

by: SA Stocks To Watch


SA contributors highlight stocks to watch for unusual movement, their bias (long/short), and brief comments.

Stocks are listed alphabetically by symbol. Click on the contributor's name to read more articles by that author.

Discuss today's stocks and ask contributors questions in the comments.

Track how today's Stocks To Watch are performing here. To send in your own ideas for tomorrow's Stocks To Watch, email before 6:00 AM ET Thursday.

GeoPark (NYSE:GPRK) - short - Don Dion

  • August 6 marks the end of the 180 day lockup period for GPRK.
  • On Wednesday, major pre-IPO shareholders, including asset management, private equity firms, and GPRK executives and directors, are allowed to sell their 26.1 million shares.
  • Given this potential supply shock, GPRK's price could temporarily decline.
  • Further details here.

Groupon (NASDAQ:GRPN) - long - Pat Stout

  • Reported earnings that fell short of expectations
  • After-hours reaction was negative.
  • Trading near recent lows, a modest rebound is expected.

Itron (NASDAQ:ITRI) - short - Pat Stout

  • Reported earnings that beat expectations.
  • There was no after-hours reaction.
  • Expect a modest bounce from the recent weakness.

Molycorp, Inc. (MCP) - Straddles - Shock Exchange

  • Molycorp is set to announce Q2 earnings Wednesday after-hours.
  • With $236MM in cash and Q1 cash burn of $78 million, Molycorp is cash-strapped.
  • Cash burn > $50MM could be seen as negative, and stock may sell off.
  • News of asset sales or bootstrap deal could cause short squeeze.
  • Straddles with August 16 or August 22 calls at strike of $2.50 and puts at strike of $1.50 may pay off.

Whole Foods (NASDAQ:WFM) - long - Pat Stout

  • Rumored interest by Mr. Icahn.
  • Broke above SMA20 $37.50, making run for SMA50 at $42.47.
  • Increase in volume.