Why Cheetah Mobile (CMCM), Raptor Pharmaceutical (RPTP) and Eros International (EROS) are 3 of Today’s Best Stocks

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U.S. markets fell heavily in the morning, and never recovered as traders grappled with continuing concerns over the impasse in Greece and a Chinese stock market that showed little sign of stabilizing.  What was termed an”internal technical issue” shut down the NYSE from about 11:30 a.m. to just after 3 p.m.  Volume was therefore lighter than usual on many of the NYSE stocks today; NYSE officials stated there was no evidence of cyber attacks on their system.

cheetah mobile cmcm 185Overnight, the Shanghai Composite fell nearly 6%, even with the Chinese government propping up the market by purchasing shares of some of the largest companies on the index and restricting insiders who hold more than a 5% stake from selling shares within the next six months.

Meanwhile, in Greece, the prime minister has pledged to present a detailed proposal of reforms by Friday which will hopefully permit a deal to be reached by the Sunday summit that will give Greece its much needed bailout.

The Dow Jones Industrial Average lost 1.5%, while the S&P 500 was 1.7% lower, and the Nasdaq, which has been the weakest of the indices lately, was down 1.8%.  Every sector was in the red today, with basic materials and energy stocks hit particularly hard.

Although very few issues were up more than 3% today, a few such as Cheetah Mobile Inc (ADR) (CMCM), Raptor Pharmaceutical Corp. (RPTP) and Eros International plc (EROS) managed to counter the bearish mood, finishing as three of the best performers in the stock market today.

Cheetah Mobile (CMCM)

Despite heavy losses in the Shanghai market, it was a bounce-back day for several Chinese ADR stocks, including shares of the app platform company Cheetah Mobile,  YY Inc (ADR) (YY), and NetEase, Inc. (ADR) (NTES).  Telecommunications and social media stocks were doing particularly well.

CMCM stock, which fell below its 200-day moving average yesterday, bolted back above that level today, rising almost 4%.  The stock has fallen from $36 to $23 in the last few weeks, and was clearly overdue for a bounce.

Raptor Pharmaceutical (RPTP)

RPTP stock was another big winner today, despite being downgraded two days ago by Christopher Maral, an analyst at Oppenheimer.  Maral believes the stock is quite overvalued and could drop as much as 50%.

Apparently the Street disagreed, as RPTP, which finished almost 5% higher, regained much of its 12% loss from Monday.  RPTP, which is marketing its Procysbi treatment for nephropathic cystinosis, is said to be a likely acquisition candidate going forward.  However, Maral disagreed with this and states that the market for Procysbi is likely to be less than previously expected.

Eros International (EROS)

Eros International is a company that produces, acquires, and distributes films out of India.  EROS stock has been on a roll since the beginning of May, and has risen about 55% during that time.

EROS was up more than 7% today after beating analysts’ estimates for its fourth quarter earnings.  Eros earned an adjusted 31 cents per diluted share on revenue of $88.5 million, which was up 40% year- over- year.  Analysts had estimated 28 cents per share on $86.7 million.

Also boosting EROS stock was a report that EROS is in advanced talks with Fullerton Fund Management Company to sell a 10% stake in its Eros Now unit, for as much as $800 million.  Eros Now is the company’s streaming platform, and has roughly 19 million subscribers throughout India and some other areas of the world.

EROS would not comment on the report, but investors did the talking for them.

As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2015/07/cheetah-mobile-inc-adr-cmcm-raptor-pharmaceutical-corp-rptp-eros-international-plc-eros-3-todays-best-stocks/.

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