The spectacular 1,500 percent rally of DryShips shares has come to an end. Its stock price, which jumped to over $100 from $4.56 in one week, now is trading at $62. To see how the investors are taking in the news and how they adapt their trading strategy to this, stick with Sentifi.
DryShips Inc.: Shares now trade at $62
Traders say an optimism about global economic growth and a host of technical factors were the driving force behind the rally of the company’s shares. But it seems like buy side demand has started to wane, resulting in the downward movement of the shares. The so-called “a day traders’ dream” may be inching close to its ending.
Bank of Mexico: Raises interest rates to shore up peso
The central bank of Mexico has raised the key interest rates by 0.5 percent to 5.25 percent in an attempt to shore up the peso which has collapsed following Donald Trump’s win in the election. The bank also warned of a more complex global economy due to Trump. The currency weakened to trade about 1 percent against the U.S. dollar following the rate hike, proving that the bank has failed in delivering relief to the peso.
Valeant: Executive faces criminal charges
Gary Tanner, a Valeant executive until Sept. 2015, faced criminal charges for wire fraud and money laundering. He was working with the former CEO of Philidor, whom also faced charges, to further Philidor’s interest at the expense of Valeant and convert Valeant shareholder money into personal nest eggs.
Janet Yellen: Signals the U.S. central bank may hike the interest rates relatively soon
This comes from the fact that the U.S. economic data is strengthening, providing the much-needed foundation for the rate hike. U.S. consumer prices reached the biggest increase in six months in October thanks to rising petrol costs and rents. First-time application for unemployment benefits also dropped to a 43-year low while new housing units jumped to a nine-year high in October.
Diana Containerships Inc.: Shares trade down 58.24 percent
The company is one of the shipping companies that rode the rally wave created by DryShips. But as the wave started to wane, its shares began to drop. The company also posted quarterly earning results, with earnings reaching $8 million, below the analysts’ estimate of $8.1 million. Revenue was down 50.3 percent year-over-year.
Western Refining Inc.: Acquired by Tesoro for $4.1 billion
The deal will create one of the largest fuel processors in the Western U.S., with Western’s refineries in Texas, New Mexico and Minnesota to be added to Tesoro’s network. It would also provide Tesoro with the opportunity to continue expanding in areas near shale fields. Tesoro shares climbed 1 percent, and Western Refining shares jumped 23 percent.
Royal Mail: Shares fall 7.6 percent on weak profits
The shares hit the lowest level since March as operating profit for the six months to Sept. 25 fell 5 percent. The company has increased its cost savings target to £600 million a year from £500 million a year. The company is concerned as the fall in the volume of letters and an 8 percent dip in marketing mail after the Brexit vote are spelling uncertainty for the outlook.
Henkel: Plans to step up investments to boost profits
The company is looking to invest as much as $3.2 billion through 2020, enter new markets and get new products on to the store shelves more quickly. It also sets the goal for average annual growth of adjusted earnings per preferred share of 7 to 9 percent through 2020.
SolarCity Corp.: Shareholders approve merger with Tesla
More than 85 percent of shares voted were cast in favor of the acquisition, according to a statement from Tesla. The transaction is expected to be completed in the coming days.
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