Stocks to Watch for Feb. 14: Stada Arzneimittel, ZELTIQ Aesthetics

February 14, 2017

Stada Arzneimittel remains one of the hottest companies in the stock market, but medical technology company ZELTIQ Aesthetics is getting a lot of attention as well. Those two stocks receive the most bearish sentiments from the crowd, so join Sentifi financial crowd to find out why you should add them to your watchlist.

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Nordstrom Inc.: Stock’s on the decline

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After the highs are the lows as Nordstrom is experiencing a decline in its shares. The company’s stocks rallied following its decision to drop Ivanka Trump’s apparel line, but it seems the hype has worn off. Opening at $45.25, the stock closed at $44.35, which translates to a decline of 1.42 percent. In after-hours trading, the stock recovered slightly to $44.47. Many traders are shorting the stock expecting its value will drop even more. That said, a huge portion of anti-Trump traders are still supporting the stock.

Infosys: Stock rises but so does concern

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The stock of the Indian corporation traded up by more than 1 percent today, but the company doesn’t seem to be in the best position, the reason being that the company is under pressure from governance challenges. Currently, the company has $5.25 billion in cash, and the shareholders are anxious, almost impatient, about what the company plans to do with that money. They want to know how quickly the company will shift to the digital model to not lag behind competitors such as IBM and Accenture that are getting stronger in the digital business. The consensus among investors is the company needs to either reward shareholders or acquire assets with that money. In the stock market, many traders have caught wind of that pressure, and predicted the company’s stock will head downward if the company cannot meet with shareholders’ expectations.

Stada Arzneimittel AG: Names the second bidder

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The German pharmaceutical company received two takeover bids, and only named one bidder, which is British investment company Cinven. Now, Stata has named the second bidder, and it’s none other that the U.S. investment firm Advent. Cinven made an offer of €56 a share, but analysts of the financial service provider Kepler value Stada at €62 a share. The company’s shares have continued to trade up, increasing by 12.75 percent. More and more traders are jumping on the bandwagon as the words are out that Stada is one of the best stocks in the market at the moment.

ZELTIQ Aesthetics & Allergan Plc.: An opportunity in the market

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The company’s shares jumped almost 13 percent after drug giant Allergan announced an acquisition of Zeltiq. Allergan paid $2.5 billion for Zeltiq’s CoolSculpting system, which freezes away unwanted fat, a technology that Allergan believes represents a huge market opportunity worldwide and a growing business. Traders in the market are calling Zeltiq “a winner,” with more traders flocking to the stock every second.

Nikon Corp.: Takes heavy casualties

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In a world where smartphones boast robust cameras that rival those of professional camera, Nikon — a company known for its cameras, is struggling despite efforts to restructure. The company has deepened its projected group net loss to ¥9 billion or $79.1 million for the fiscal year ending Mar. 31, which is ¥3 billion more than its previous forecast. The company’s shares traded down 12.69 percent as traders sold off the stock. They said in the future they want to see proof that the company is turning a profit or at least making improvement before they invest in the company.

Sears Holdings Corp.: Announces restructuring and store closures

Sears is in a bad situation financially, and every trader knows it. Two months ago, the company announced the closure of 150 stores across the U.S., which sent its shares spiral downward. Now, it’s unveiled a restructuring plan to streamline operations, improve operating performance and target cost reductions of at least $1 billion on an annualized basis. But, plans are plans, and there’s no guarantee that the plan will work. Thus, traders still stay away from the stock.

Hindustan Motors Ltd.: The hype wears off

The Indian carmarker enjoyed a 10.45 percent surge in its shares after selling its iconic Ambassador car to French carmaker Peugeot. That said, as soon as the market opened, the stock went down 4.20 percent, signaling short-selling. Many traders are still stuck with the stock, believing it has great prospects, but at the moment, many traders consider the stock a short-selling opportunity.

Kirin Holdings Co.: Sells Brazilian operations to Heineken

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The Japanese company has sold its loss-making Brazilian breweries to Heineken for approximately €1.025 billion. With this deal, Kirin officially departed from the Brazilian market where it paid about $3.9 billion for 12 breweries but was troubled with lost market share and rising raw material costs due to a weak currency and rampant cost inflation. Due to its failed business in Brazil, the company’s shares have dropped 3.99 percent as many shareholders and traders now question the company’s decisions. Traders advise to hold off on investing and wait for more concrete signs that the company is worth investing.

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