Schaeffer's Top Stock Picks for '25

Toshiba Talks Ignite Western Digital Stock; Halcon Soars After Asset Dump

Halcon Resources sells assets, stock soars

Managing Editor
Jul 11, 2017 at 3:13 PM
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U.S. stocks are lower, but are well off their intraday lows, after the bombshell news over Donald Trump Jr.'s emails about Russia. Data storage expert Western Digital Corp (NASDAQ:WDC) and energy stock Halcon Resources Corporation (NYSE:HK) are higher today, while auto parts retailer VOXX International Corp (NASDAQ:VOXX) struggles. Here's a quick look at what's moving shares of WDC, HK, and VOXX.

Toshiba Talks Boost Western Digital Stock

Western Digital stock is up 2.8% to trade at $91.83, among the best on the S&P 500 Index (SPX), after Reuters reported Toshiba was in talks with Western Digital and Foxconn to sell its chip unit, after talks with a consortium of investors stalled. Toshiba acknowledged the talks and the existence of suitors outside of its preferred bidder for the unit -- the expected sale of which has been making headlines for weeks, even prompting threats of a lawsuit. WDC stock has had a solid year, adding 34% year-to-date atop its 80-day moving average. In fact, Western Digital shares recently hit a two-year high of $95.00 on June 23.

Options seem to be attractively priced for Western Digital. WDC's Schaeffer's Volatility Index (SVI) of 36% ranks in the 19th percentile of all other readings from the past year, implying that near-term options are pricing in relatively low volatility expectations. Plus, WDC sports a Schaeffer's Volatility Scorecard (SVS) of 84, indicating the shares have exceeded options traders' volatility expectations in the past year.

Halcon Stock Skyrocketing After Asset Sale

Halcon Resources stock is booming, up 45% to trade at $6.45 -- one of the biggest gainers on Nasdaq today -- after selling its Williston Basin assets for $1.4 billion in cash. The deal allows Halcon to use the cash to "provide us with a strong balance sheet and liquidity to execute our growth plans," according to CEO Floyd Wilson. The sale comes at a crucial time for shares of HK, which are set to break above their 80-day moving average for the first time since February. While the shares have shed 31% year-to-date, they have added 75% since falling to an all-time low of $3.68 on June 23.

There could be plenty of bears feeling the heat today. Short interest on Halcon Resources stock increased by 23% over the last two reporting periods, and roughly 15% of the stock's float is currently sold short. 

Voxx International Stock Reeling After Earnings

VOXX International stock is down 16% to trade at $7.40, one of Nasdaq's worst intraday performers today, after the company reported a steeper-than-expected quarterly loss of 13 cents per share. It's a slight bump in the road for VOXX stock, which is up 57% year-to-date, and had just reached a new annual high of $9.00 on June 30. With the pullback today, the shares are trading just a hair above their 40-day moving average, which has contained many pullbacks since February.
 
 

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