Schaeffer's Top Stock Picks for '25

2 Stocks Making Big Moves on Government Buzz

Short sellers were targeting YRCW stock coming into today

Dec 14, 2018 at 3:22 PM
facebook X logo linkedin


The Dow is trading in the red this afternoon due to the bearish economic data out of China. Three small-cap stocks to watch in today's action are transportation issue YRC Worldwide Inc (NASDAQ:YRCW), hydrogel specialist Alliqua Biomedical Inc (NASDAQ:ALQA), and biopharma name Idera Pharmaceuticals Inc (NASDAQ:IDRA). Let's take a closer look at the news on shares of YRCW, ALQA, and IDRA.

DoJ Lawsuit Plays Into Shorts' Hands

The Department of Justice (DoJ) is suing YRC Worldwide for overcharging the federal government for its services and then covering up its actions. The company's general counsel said the claims "are totally without merit," and it's "made every effort over nearly a decade to address the government's questions."

The stock continues to fall to new record lows, last seen down 24.3% at $3.35, bringing its year-to-date deficit to almost 77%. Meanwhile, it would seem many traders were anticipating potential heavy losses from YRCW stock, considering short interest accounts for almost 10% of the freight concern's total float.

Federal Grant Boosts ALQA Shares

ALQA stock has spiked 26.2% to trade at $2.66, thanks to news the National Institute on Drug Abuse (NIDA) awarded the company a $5.7 million grant to aid the development of brivoligide, a drug for postoperative pain made by Adynxx -- a company Alliqua Biomedical is trying to buy. Anyway, following a late-November bull gap, which stemmed from the firm's spin-off plans, ALQA traded as high as $5.24, coming right off its Oct. 24 low of $1.55. Looking at some sentiment data, there was a notable rise in short interest recently, putting just over 8% of the float in the hands of short sellers.

IDRA Risks Downgrades with Latest Low

IDRA stock is down 29.5% at $4.65, as investors punish the company following an update on a mid-stage trial of its skin cancer treatment. This is just more of the same for the shares, as they've plummeted from around $20 at the start of 2018 to today's new five-year low of $4.58.  This stock is seriously in danger of being hit with rounds of bearish analyst attention, since all six brokerage firms in coverage have "strong buy" ratings at the moment.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter