{"id":42742,"date":"2018-02-17T02:09:44","date_gmt":"2018-02-17T10:09:44","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=42742"},"modified":"2018-02-17T02:09:44","modified_gmt":"2018-02-17T10:09:44","slug":"morgan-stanley-turns-in-strong-report-card-on-speculation","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2018\/02\/17\/morgan-stanley-turns-in-strong-report-card-on-speculation\/","title":{"rendered":"Morgan Stanley Turns In A Strong Report Card On Speculation"},"content":{"rendered":"<p>At the beginning of the year, <a href=\"http:\/\/drduru.com\/onetwentytwo\/2018\/01\/02\/speculations-morgan-stanley\/\" rel=\"noopener\" target=\"_blank\">I drew up a list of stocks<\/a> that Morgan Stanley (MS) recently included in 13G filings to disclose significant stakes. My interest was sparked by a surprising stake in Xunlei Limited (XNET), and I was further surprised to find a notable list of speculative stakes by Morgan. Now that <a href=\"http:\/\/drduru.com\/onetwentytwo\/2018\/02\/16\/t2108-update-180215\/\" rel=\"noopener\" target=\"_blank\">the stock market is on the mend from an episode of deeply oversold conditions<\/a>, I thought I would take a quick look at the year-to-date performance of those stocks. The relatively strong performance card suggests that Morgan Stanley sure knows how to speculate!<\/p>\n<p>For reference, the S&#038;P 500 (SPY) is up 2.2% year-to-date. The more speculative NASDAQ is up 4.9% year-to-date. The even more speculative iShares Russell 2000 ETF (IWM) is up just 0.6% since the end of 2017.<\/p>\n<p>Year-to-date performance of Morgan&#8217;s recent positions, mostly speculative, in descending order:<\/p>\n<p>Atara Biotherapeutics, Inc. (ATRA): 151%<br \/>\nSharpSpring, Inc. (SHSP): 13.0%<br \/>\nApptio, Inc. (APTI): 11.4%<br \/>\nPennyMac Financial Services, Inc. (PFSI): 11.2%<br \/>\nAsbury Automotive Group, Inc. (ABG): 7.5%<br \/>\nOverstock (OSTK): 0.4%<br \/>\nHighland Floating Rate Opportun (HFRO): -0.3%<br \/>\nBlackRock 2022 Global Income Opportunity Trust (BGIO): -1.5%<br \/>\nRoku (ROKU): -7.0%<br \/>\nXunlei Limited (XNET): -13.0%<br \/>\nPHH Corporation (PHH): -15.0%<br \/>\nDiana Container Ships (DCIX): -31.5%<\/p>\n<p>I am guessing the position in Atara is by itself enough to make up for the losing positions, including the head scratcher position in DCIX. Morgan&#8217;s strongest stocks barely swooned during the recent sell-off. ATRA is at an all-time high. APTI is just off its all-time high. SHSP actually RALLIED during the sell-off. PFSI took a spill during the sell-off, but its bounce back has been sharp enough to send the stock soaring to a new all-time high. <\/p>\n<p>In other words, when Morgan speaks it likely pays to listen. However, and very ironically, my two active positions which overlap with Morgan are hedged shorts in OSTK and ROKU that I have flipped multiple times. I have not shorted XNET this year.<\/p>\n<p><center><br \/>\n<figure id=\"attachment_42743\" aria-describedby=\"caption-attachment-42743\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/02\/180216_ATRA.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/02\/180216_ATRA.jpg\" alt=\"Morgan&#039;s position in Atara Biotherapeutics, Inc. (ATRA) is by far its best speculation to-date in 2018. The stock continues to ride momentum from January&#039;s success with the FDA.\" width=\"550\" height=\"397\" class=\"size-full wp-image-42743\" \/><\/a><figcaption id=\"caption-attachment-42743\" class=\"wp-caption-text\">Morgan&#8217;s position in Atara Biotherapeutics, Inc. (ATRA) is by far its best speculation to-date in 2018. The stock continues to ride momentum from January&#8217;s success with the FDA.<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_42748\" aria-describedby=\"caption-attachment-42748\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/02\/180216_PFSI.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/02\/180216_PFSI.jpg\" alt=\"PennyMac Financial Services, Inc. (PFSI) bounced sharply out of the recent sell-off. It is a bit surprising to see a mortgage company come out the sell-off with MORE vigor.\" width=\"550\" height=\"401\" class=\"size-full wp-image-42748\" \/><\/a><figcaption id=\"caption-attachment-42748\" class=\"wp-caption-text\">PennyMac Financial Services, Inc. (PFSI) bounced sharply out of the recent sell-off. It is a bit surprising to see a mortgage company come out the sell-off with MORE vigor.<\/figcaption><\/figure><br \/>\n<br \/>\n<figure id=\"attachment_42744\" aria-describedby=\"caption-attachment-42744\" style=\"width: 540px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/02\/180216_DCIX.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/02\/180216_DCIX.jpg\" alt=\"Morgan Stanley&#039;s position in Diana Containerships Inc. (DCIX) is by far its worst of 2018. I am still scratching my head over this position since DCIX mainly just sells off day after day...\" width=\"550\" height=\"392\" class=\"size-full wp-image-42744\" \/><\/a><figcaption id=\"caption-attachment-42744\" class=\"wp-caption-text\">Morgan Stanley&#8217;s position in Diana Containerships Inc. (DCIX) is by far its worst of 2018. I am still scratching my head over this position since DCIX mainly just sells off day after day&#8230;<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"https:\/\/finance.yahoo.com\/quote\/phh\/?p=phh\" rel=\"noopener\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>Full disclosure: short OSTK shares, long OSTK calendar call spread, short ROKU shares, long ROKU calls, long ROKU calendar call spread<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the beginning of the year, I drew up a list of stocks that Morgan Stanley (MS) recently included in 13G filings to disclose significant stakes. My interest was sparked by a surprising stake in Xunlei Limited (XNET), and I was further surprised to find a notable list of speculative stakes by Morgan. Now that &#8230; <a title=\"Morgan Stanley Turns In A Strong Report Card On Speculation\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2018\/02\/17\/morgan-stanley-turns-in-strong-report-card-on-speculation\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1974,548,300,219,599,1311,518],"tags":[1979,1978,1139,1987],"class_list":["post-42742","post","type-post","status-publish","format-standard","hentry","category-cryptocurrency-forex","category-financials","category-health-care","category-high-tech","category-internet","category-software","category-transportation","tag-atra","tag-dcix","tag-ms","tag-pfsi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Morgan Stanley Turns In A Strong Report Card On Speculation - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2018\/02\/17\/morgan-stanley-turns-in-strong-report-card-on-speculation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Morgan Stanley Turns In A Strong Report Card On Speculation - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"At the beginning of the year, I drew up a list of stocks that Morgan Stanley (MS) recently included in 13G filings to disclose significant stakes. 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