Rite Aid Corporation (NYSE:RAD), USA Truck Inc. (NASDAQ:USAK) and Celladon Corp. (NASDAQ:CLDN) made big morning gains this Wednesday. AOL Inc. (NYSE:AOL), Seventy Seven Energy Inc. (NYSE:SSE) and International Tower Hill Mines Ltd. (NYSEMKT:THM), however, started the day with tumbles.
Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More
USA Truck Inc. Catches a Big Break
Rite Aid Corporation surged +9.76% after revealing a $2 billion agreement to acquire EnvisionRx. As of the third quarter of 2014, Ray Dalio’s Bridgewater Associates holds 2.12 million RAD shares. The fund has likely posted a gain on the position, given Rite Aid’s +30% six-month climb.
USA Truck Inc. gained +9% this morning. The long-haul trucking and logistics company announced net income of more than $6 million in 2014 and posting record fourth quarter per-share earnings. What makes this especially impressive: USA Truck had lost more than $48 million in the five years before 2014. Billionaire Julian Robertson picked up 72,000 USAK shares in the second quarter of 2014. The stock has rallied more than +110% over the past year.
Celladon Corp. climbed +7.14% early in the day. In Farallon Capital’s portfolio since the first quarter of last year, CLDN has gained +120% in the last year.
AOL Fails to Impress Investors with 2015 Plans
AOL Inc. tumbled -11.11% in the wake of its earnings call and outlook. The company reported $710 million in Q4 revenue and $0.92 in EPS, missing expectations on the former but exceeding them on the latter. Management described 2015 as an “investment year” and hinted at “disruption” during the first two quarters. Ray Dalio picked up 6,000 AOL shares during the third quarter of 2014.
Seventy Seven Energy fell -7.78%, though it’s still up about +25% over the past week. The Chesapeake Energy spinoff has fallen -80% since it began trading independently last June.
International Tower Hill Mines dipped -7.25% early in the day. Billionaire John Paulson recently upped his ante in the mineral exploration company to one of 23.06 million shares.