Friday Stock Market Roundup: Two 300%+ Stock Gains

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Stocks are up sharply today, but all major indexes are headed for significant losses on the week. Markets sold-off dramatically earlier in the week, driven down by reports that the Trump Administration was planning wide-ranging investment restriction on Chinese firms. US officials have since pulled back from these more aggressive plans, but markets appear to remain shaken by ongoing trade tension.

Divergent macroeconomic evidence continues to pile up: growth from Q1 was revised downward this week, while the latest data suggests both surging inflation and sagging consumer spending. Nevertheless, analysts widely expect a surge of growth in Q2 and US Tax cuts begin hitting the economy full bore. All in all, a volatile trading environment appears set to continue for at least the next several months.

Fortunately, a volatile environment is a profitable one for news-based investors.  We highlight a few of our most dramatically profitable news events from the week below, but these are just a few of 1000’s of weekly news alerts. If you’d like to learn more about using real-time news analytics to consistently locate and execute market-beating stock plays, we recommend one of our totally free virtually training sessions. You can claim a space in our next session using the button below:

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Top Performer: Pedevco (AMEX:PED) – Up over 760% on the week.

PED

Pedevco (Pacific Energy Development Corporation) has been on a truly dramatic ascent this week after announcing the completion of a major “strategic investment.” PEDEVCO has erased over $75 million in debt, effectively replacing it with a $7.7 million senior note, funded by SK Energy. PED executives estimate that the cleaned up balance sheet has increased shareholder equity by over $64 million.

The firm argues that this improved financial situation will enable them to further develop holdings representing $51 million in “Proven Undeveloped Reserves” (PEDs). Headquartered in California, PED’s central investment property is in Colorado.

The news sent investors into an utter buying frenzy. The stock currently sits up over 760% since our news alert after the close of trading on Wednesday (learn more about extended hours trading here). Astonishingly, these gains actually represent a substantial pullback from highs over 1,300% earlier in the week. This dramatic price movement is likely being driven not simply by the cleaned up balance sheet, but the revelation that a major player like SK energy saw PED as a sound investment.

Top Performer: Differential Brands Group (NASDAQ:DFBG)

DFBG

DFBG maintains a portfolio of consumer brands focused on the premium apparel, footwear, and accessory market. Prominent brands include Hudson Denim and SWIMS, a popular Scandinavian outdoor brand.

Their stock skyrocketed this week after announcing the acquisition of a set of high-value brands from Global Brands Group (a Hong Kong-listed stock). DFBG’s purchase centers on a set of North American licensed brands such as Disney, Star Wars, Calvin Klein, Under Armour, Tommy Hilfiger, BCBG, bebe, Joe’s, Buffalo David Bitton, Frye, Michael Kors, Cole Haan and Kenneth Cole. DFBG will pay $1.38 billion under the terms of the deal. The deal will be executed in cash, financed by a group of capital partners.

Investors appear smitten with the move, which will leave DFBG with over $2 billion in revenue upon completion of the sale (expected Q3, 2018). They’ve driven the stock up over 357% at the time of this writing. Once again, this price point actually represents a pullback from gains near 680% earlier in the week.

Today’s news marks a welcome respite for DFBG, which has fallen sharply in recent years. Its price at the time of this writing represents a high not seen since mid-2016.

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