For Immediate Release
Chicago, IL - April 21, 2017 - Today, Zacks Investment Ideas feature highlights Features: Ocwen Financial (NYSE: OCN - Free Report ) and Tesla (NASDAQ: TSLA - Free Report ).
Ocwen Hammered, Tesla Taps Brakes
Tech stocks are always on my mind but there are a few names that are dominating my screen today. Let's go over what I am seeing and why it is important to investors.
Ocwen Gets Hammered
Ocwen Financial (NYSE: OCN - Free Report ) is down around 55% as I write this following a cease and desist order to Ocwen Loan Servicing. This small cap financial services company has seen volume of about 29M shares so far today, but that is well 124M outstanding.
The stock has been halted a few times, as investors continue to struggle to find a floor for this stock.
The lesson here is that when 20 states give you a cease and desist order, be ready to take a big loss.
The halts allowed a few buyers to organize, but selling still look to be the order of the day for this stock.
CNET is reporting that approximately 53K Tesla (NASDAQ: TSLA - Free Report ) Model S and Model X cars are seeing a voluntary recall. About 31K of those are located in the US and the recall is for cars made between February and October of 2016.
TSLA has been in the news quite a bit and I recently wrote about how I expect the stock to go to $450 . With earnings a few weeks away the bears might have achieved a toe hold in the idea of TSLA not executing perfectly on its plan.
Recall that more than 20% of TSLA stock is sold short and most are pointing to the valuation. Some have mentioned that even if TSLA were to be making money their multiple would only be what other car company's sport (around a 5x-10x multiple). The bulls however don't seem to mind that they are paying more for growth.
The real surprise here is that the stock isn't down more! As we look at the chart above the surge in volume shows that there are plenty of buyers around the $300 level. Earning are due out on May 3, at which time a Model 3 update is expected.
Sometimes when the sellers hammer a stock they believe it is going to $0.00 and that might be the case with OCN. Other times, there are buyers just waiting for a stock to give back some ground so they can get in. Since I believe that TSLA is headed to $450, I would be a buyer on this weakness.
Follow Brian Bolan on Twitter: @BBolan1
Want more articles from this author? Go to Zacks.com on this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Get the full Report on OCN - FREE
Get the full Report on TSLA - FREE
Follow us on Twitter: https://twitter.com/ZacksResearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ocwen Financial Corporation (OCN): Free Stock Analysis Report Tesla Inc. (TSLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research