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BILI, BILL, LEV...
6/12/2022 15:06pm
Sell these stocks now, proven algorithm says


Each week, The Fly will announce the newest downgrades to Strong Sell in StockNews.com's POWR Ratings algorithmic model.


This Fly exclusive recap identifies stocks with over a $1B market capitalization that have been downgraded this week to the Strong Sell, or "F," rating in the service's proprietary model that analyzes 118 different factors, each of which contribute a little to the stock's predicted likelihood of underperformance. A bell curve distribution of StockNews.com's ratings shows that only the top 5% of the over 5,000 stocks rated by the system are assigned a "Strong Buy," or "A," rating while the bottom 5% are assigned a Strong Sell. The F-rated stocks would have tumbled an average of 18.98% a year since 1999, according to StockNews.com.


This week's downgrades to Strong Sell as determined by the POWR Ratings algorithm: 

  • Bilibili (BILI) - operator of a video community for young generations in China
  • Bill.com (BILL) - a provider of cloud-based financial operations software for small and midsize businesses
  • Energy Fuels (UUUU) - a U.S.-based uranium mining company that supplies major nuclear utilities
  • Lion Electric (LEV) - a maker of all-electric medium and heavy-duty urban vehicles
  • On Holding (ONON) - a maker of footwear, apparel, and accessories for high-performance running, outdoor, and all-day activities
  • Enviva (EVA) - a producer of industrial wood pellets that owns and operates ten plants with a combined production capacity of approximately 6.2 million metric tons per year
  • Stone (STNE) - a provider of financial technology solutions to conduct electronic commerce across in-store, online, and mobile channels 


Learn more about the POWR Ratings


The Fly's recent reporting on these stocks includes: 


On June 10, Roth Capital analyst Craig Irwin initiated coverage of Lion Electric with a Buy rating and $13 price target. The company produces all-electric medium- and heavy-duty commercial trucks, and has a leadership position in all-electric school buses, Irwin tells investors in a research note. The analyst says Lion used the cash from the special purpose acquisition company merger to diversify its product lineup, expand capacity, and vertically integrate with battery manufacturing to drive down vehicle costs. Disbursement of the $5B federal funding for electric vehicle school buses should start later this year and "present a material catalyst," contends Irwin.

The same day, Citi analyst Brian Gong lowered the firm's price target on Bilibili to $45 from $46 and keeps a Buy rating on the shares post the Q1 results. Barclays analyst Jiong Shao raised the firm's price target on Bilibili to $26 from $24 and keeps an Equal Weight rating on the shares. The analyst says the company's Q1 results and Q2 outlook were in line with expectations.

On June 7, Bloomberg's Ari Natter reported, citing a person familiar with the matter, that President Joe Biden's administration is urging lawmakers to support a $4.3B proposal to purchase enriched uranium directly from domestic producers to wean the U.S. off Russian imports of uranium. Cameco (CCJ) and Energy Fuels may move on headlines related to uranium production.


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