Wednesday Short Report: Stock Strategies for 10/11

After fighting off doldrums late last week, markets continued their stubborn climb on Monday and Tuesday and have continued gaining today.

In today's Top Performers blog, we look past the bull to examine some of the best short plays from recent days.

Short plays are a great way to diversify your exposure to overall market movement when using NewsQuantified to select news-based stock trades. There’s only one key difference. While research suggests market returns for positive “long” news events exceed averages for 90 days, negative short events beat averages over a shorter 30-day window.

1. Rentech (RTK): down on news of a NASDAQ delisting.

On Tuesday, Rentech announced a plan to voluntarily delist its stock from the NASDAQ and move to the lower profile  OTCQB Market.

Rentech was pushed to make the move due to its inability to meet a NASDAQ requirement that member stocks must consistently trade above $1.00.

RTK owns and operates wood fiber processing and wood pellet production businesses. The news sent the stock plummeting, down well over 30% at the time of this writing.

2.    Tandem Diabetes Care (TNDM): down after a reverse stock split.  

Tandem Diabetes Care fell over 30% upon announcing a reverse stock split on Monday. The Board will reduce the number of outstanding shares at a ratio from 8:1-12:1, at their operational discretion. They are attempting to raise their stock price to improve access to capital markets.

The stock has since come under assault from influential financial analysts, with Wedbush, for instance, lowering its price target on the stock from $50 to $15.

TNDM manufacturers insulin pumps and other support systems for patients with diabetes.

3.    Voxx International (VOXX): down sharply after a brutal earnings miss.

Voxx International dropped over 20% after issuing an earnings report on Tuesday. Their sales were down around 4%, with even sharper drops in their auto-audio business group. Analysts had been predicting a modest sales recovery.  They recently sold off their German subsidiary in an attempt to consolidate a flagging balance sheet.

VOXX is a consumer electronics company, owning a number of high profile audio equipment companies.

Dozens of News-Based Stock Plays, Great Profits: Every single day.

Keep checking our blog for daily updates on lucrative new-based stock plays, analyst actions, and more!

We analyze news events ranging from clinical trials in the pharmaceutical industry to routine earnings releases to major geopolitical shakeups.

Or, if you’re ready to move beyond the blog and experience the power of hedge-fund caliber news analysis in a package that’s accessible to small investors, click here to sign up for a free training today. You’ll see how easy to use our platform really is—and how many profitable trades it can unlock

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 plays make the power of this news-based trading approach clear. No small investor could be expected to track all these companies, diverse across industry, market cap, and valuation.

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, diverse plays in any market environment.

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