Monitoring Twitter streams on a daily basis can often help investors identify the stocks that are attracting attention.
That said, there is a lot of noise on Twitter, with self-promotional spambots and "pump and dump" types creating more noise than value.
To refine the quality of our Twitter screener, listed below, we only focus on Twitter users that we've deemed to be of good quality.
In addition, we've ignored companies that get flooded by daily tweets (like Apple). The assumption here is that we're focusing on smaller, lesser known names that may be gaining attention.
Here are the 10 most tweeted stocks on August 28. For each stock, we'll list a short summary of recent headlines that have sparked interest in the Twitterverse.
A more complete list of the top 30 tweeted stocks can be accessed here.
1. AOL, Inc. (AOL): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. There were 24 tweets since 8/26, vs. one tweet between 8/21 - 8/26. The company announced today that it is offering a special $5.15 dividend, and will also buy back $600 million of its own stock.
2. Skullcandy, Inc. (SKUL): Develops and distributes headphones and other audio accessories to retailers in the United States and to distributors in various countries worldwide. There were 24 tweets since 8/26, vs. one tweet between 8/21 - 8/26. The stock seems to be benefiting from short covering, with rumors doing the rounds that there is a contract negotiation with Wal-Mart (WMT) underway.
3. International Business Machines Corp. (IBM): Provides information technology (IT) products and services worldwide. There were 23 tweets since 8/26, vs. two tweets between 8/21 - 8/26. IBM introduced a new line of mainframe computers for age of Big Data.
4. Idenix Pharmaceuticals Inc. (IDIX): Engages in the discovery and development of drugs for the treatment of human viral and other infectious diseases in the United States and Europe. There were 23 tweets since 8/26, vs. two tweets between 8/21 - 8/26. The stock recorded a strong reversal during Monday's session, and bullish sentiment has carried through during Tuesday's session.
5. Pharmacyclics Inc. (PCYC): Operates as a clinical-stage biopharmaceutical company focusing on developing and commercializing small-molecule drugs for the treatment of immune mediated disease and cancer. There were 23 tweets since 8/26, vs. two tweets between 8/21 - 8/26. The stock recently made a new 52 week high by crossing daily highs resistance. As a result, it continues to be a hot topic on Twitter.
6. Spectrum Pharmaceuticals, Inc. (SPPI): Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. There were 23 tweets since 8/26, vs. two tweets between 8/21 - 8/26. This biotech company is getting attention for all the wrong reasons, recently hitting a new low while in a solid downtrend.
7. Hertz Global Holdings, Inc. (HTZ): Engages in the car and equipment rental businesses worldwide. There were 22 tweets since 8/26, vs. three tweets between 8/21 - 8/26. Hertz announced that they'll be buying Dollar Thrifty Automotive Group for about $2.3B. So far, the reaction has been mildly bearish.
8. Navidea Biopharmaceuticals, Inc (NAVB): There were 22 tweets since 8/26, vs. three tweets between 8/21 - 8/26. This small biotech has an important FDA decision coming up, and Twitter traders are getting excited about the potential catalyst.
9. Pandora Media, Inc. (P): Operates as an Internet radio company in the United States. There were 22 tweets since 8/26, vs. three tweets between 8/21 - 8/26. Pandora is set to announce earnings.
10. LinkedIn Corporation (LNKD): Operates an online professional network. There were 21 tweets since 8/26, vs. four tweets between 8/21 - 8/26. Twitter users have pointed out that the company recently found a new level of technical support, and sentiment on Twitter seems to have turned bullish during recent sessions.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.