Three Shorts, Solid Profits: Top Performers for 8/22

The market continued to inch upwards on Monday, recovering as signs of geopolitical turmoil on the Korean Peninsula lessened.

Still, however, the market has a historically high valuation, making it more important than ever for investors to implement strategies carefully calibrated to beat the market.

Today, our system identified three news-based shorts as our top performing trades for 8/22. Poor earnings and other negatives kept these stocks down even as the market rallied, and they’re likely to stay strong short plays over the next 30 days.

1.La-Z-Boy (LZB): Down double-digits on sluggish earnings.

LZB Chart

American furniture maker La-Z-Boy fell over 10% on a poor earnings report.

While the Q1 results showed sales up 4.8% to $357.1 million, this outcome undershot analyst expectations, driving the selloff.

The sales increases were driven by recent acquisitions, and doesn’t represent added demand for LZB’s core manufacturing business model. Kurt Darrow, LZB Chairman, admitted as much in the Q1 filing: “Although we posted a consolidated sales increase for the quarter, much of it related to acquired sales which did not add volume to our upholstery manufacturing operations which is our most profitable segment."

2.Ultragenyx Pharmaceuticals Inc  (RARE): Down on a disappointing clinical trial.

RARE Chart

Drug-developer Ultragenyx Pharmaceutical dropped nearly 10% on Tuesday, falling on news that a recent Phase 3 Clinical trial hadn’t delivered hoped-for results.

Successful drug development news events are often one of the most reliable sources for sudden, impressive gains from the NewQuantified platform. This event demonstrates that even failed treatment development can be turned into a nice trading opportunity.

The treatment, aceneuramic acid extended release, or Ace-ER, did not meet statistical benchmarks for GNE Myopathy.

3.Root9b Holdings (RTNB): Sharp downward momentum on a spiraling financial situation.

RTNB Chart

Root9B provides network security services for various enterprises.

After recent financial struggles, the company announced on Tuesday the issuance of promissory notes for $500,000 in operating capital. The funds will allow Root9B to continue meeting payroll obligations.

Investors seem to think the company is stalling out in its financial restructuring efforts, driving the stock to double-digit losses on the trading session.

Diverse Plays, Big Gains: All in a single news day.

A powerful news analytics platform like NewsQuantified not only makes it easy to track the news, but to quickly compare news events with key financial information.

Today’s short plays make the power of this news-based trading approach clear. These plays came from three different sectors, and relatively obscure stocks. No small investor could be expected to track all these companies

Yet they were all at the top of a single easy to use dashboard in the NewsQuantified platform. We make it simple to find strong short plays in any market environment.

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