S.A. Team

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Thursday’s Market Insights: DryShips Inc. (DRYS), Himax Technologies, Inc. (ADR) (HIMX), bluebird bio Inc (BLUE)

Here's a Running Tab of Updates Which We Find Most Relevant


DryShips Inc.

DryShips Inc. (NASDAQ:DRYS) investors are running for the hills after the Greek bulk shipping firm disclosed in its earnings report that the Securities and Exchange Commission (SEC) has issued a subpoena to DRYS, demanding documents related to company’s huge sale of stock between June 2016 and July 2017. That said, investors are worried that the SEC feels there may be suspicious issues to justify an inquiry, sending shares tumbling 14%.

The news comes as the company is already dealing with litigation after various complaints were filed in the Marshall Islands and the United States, alleging various violations by DryShips and/or two of its officers in connection with the securities laws of the United States and Marshall islands.

Day trading expert Henrik Alex commented, “Frankly speaking, I was wondering why it took so long for the SEC to request information from the company regarding the infamous Kalani offerings in light of the various lawsuits that have already been filed against the company and its officers in both the Marshall Islands and the United States. That said, DryShips’ investors shouldn’t be too concerned at this point as the company has managed to successfully defend itself against securities lawsuits in the past. Moreover, the vast majority of SEC investigations end without any action being taken and, in fact, there’s not even a formal investigation, yet.”

Himax Technologies

Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) shares climbed notably higher for two days in a row, after the Taiwan semiconductor maker announced its 3D sensing camera partnership with QUALCOMM, Inc.(NASDAQ:QCOM). Specifically, the companies will accelerate the development and commercialization of a high resolution, low power active 3D depth sensing camera system to enable computer vision capabilities for use cases such as biometric face authentication, 3D reconstruction, and scene perception for mobile, IoT, surveillance, automotive and AR/VR.

Rosenblatt analyst Jun Zhang commented, “We maintain our cautiousness on Qualcomm and Himax as we believe the solution will not be ready until late-2018 due to the difficulties of packing edge emitter lasers. We note that AAC Technologies’ wafer level glass (WLG) could gain traction in the market to replace WLO in 3D sensing solutions in 2018.” (To watch Zhang’s track record, click here)

Where does the rest of the Street side on this semiconductor player? It appears mostly bullish, as TipRanks analytics demonstrate HIMX as a Buy. Out of 6 analysts polled by TipRanks in the last 3 months, 4 are bullish on Himax stock while 2 are bearish. However, with a downside potential of nearly 11%, the stock’s consensus target price stands at $8.83.

bluebird bio Inc

Cowen analyst Eric Schmidt is out with a research note on shares of bluebird bio Inc (NASDAQ:BLUE), following a meeting with CEO Nick Leschly, where they discussed expectations for the upcoming data releases. The analyst remains impressed with the thoughtfulness with which management is pursuing each indication.

Schmidt noted, “We met with CEO Nick Leschly and discussed the company’s pipeline progress with specific focus on H2:17 data updates for each of the company’s late stage clinical programs: LentiGlobin in beta-thalassemia; LentiGlobin in sickle cell disorder (SCD); bb2121 in myeloma (partnered with Celgene), and; Lent-D for adrenoleukodystrophy (ALD). bluebird expects to submit updated data for ASH presentation on LentiGlobin and bb2121 while the company will provide a separate data update on Lenti-D. We would expect bluebird to host an R&D Day ahead of ASH in order to provide a more in depth discussion of these upcoming datasets.” (To watch Schmidt’s track record, click here)

bluebird shares are currently trading at $123.85, up $11.35 or 10.09%.

Out of the 18 analysts polled in the past 3 months, 11 rate Bluebird bio stock a Buy, 5 rate the stock a Hold and 2 recommend a Sell. However, with a downside potential of 16%, the stock’s consensus target price stands at $104.78.