BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.
These "most active" names are the most heavily traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.
Without further ado, here's a look at today's stocks.
Kodiak Oil and Gas
Nearest Resistance: N/A
Nearest Support: $14.75
Catalyst: Takeover Offer
Kodiak Oil and Gas (KOG) is leading the pack this afternoon, thanks to an all-stock acquisition offer from larger peer Whiting Petroleum (WLL). The Whiting deal would give Kodiak shareholders 0.177 shares of WLL for each KOG share they own, an arrangement that works out to a $14.74 acquisition price as I write. The combined firm would be the biggest oil producer in the Bakken/Three Forks formation, with more than 107,000 barrels of oil equivalent per day in output.
More significantly, because it's a stock deal, KOG's price action isn't locked down at a fixed buy price. That's a good thing considering the bullish breakout above $14.75 that we're seeing today. There's still a lot of event risk from the acquisition, but traders who aren't risk-averse can consider a starter-position with a tight stop here.
Nearest Resistance: $57.89
Nearest Support: $39
Catalyst: Acquisition Offer
Mid-cap engineering firm URS (URS) is up on big volume this afternoon, following a buyout offer from larger peer Aecom Technology (ACM). The deal will pay URS shareholders $33 in cash and 0.734 shares of ACM for each share of URS they own; at current price levels, that amounts to $57.89 per share for URS. That amounts to a small 1.5% merger arbitrage opportunity left in shares as I write. That's not enough for most retail investors to take advantage of.
The technical picture at URS changed at the start of July, when the downtrend broke and shares started moving swiftly higher. At this point, most of the money has been made. There's a lot of event risk in this name for a 1.5% profit opportunity.
Nearest Resistance: $53
Nearest Support: $48
Catalyst: Abbott Generics Acquisition
Generic pharmaceuticals giant Mylan (MYL) is up 2.6% on big volume this afternoon, following the news that the firm would be acquiring Abbott Laboratories' (ABT) generic drug business in established markets and relocating its business to the Netherlands in a move to cut corporate taxes.
The acquisition will increase the scale of an already-huge generics business at Mylan, but buyers who want to get exposure should wait. Shares are near the top of their recent range this week, and resistance at $53 could be a stumbling block. Look for a lower-risk entry closer to trend line support.
Nearest Resistance: $58
Nearest Support: $53
Catalyst: Shire Bid
On an unrelated note, Abbott Labs spinoff AbbVie (ABBV) is seeing big volume today after it announced a $53.7 billion offer to purchase Shire (SHPG) just a few sessions before the firms' negotiation period was set to end. This is another "spinversion" deal that will enable ABBV to move to Shire's Dublin domicile for tax savings purposes.
This is another name that's not looking like a buying opportunity just yet. In fact, ABBV is looking technically "toppy" right now after getting swatted down from highs at $58 at the start of the month. If support at $53 gets violated in the next few sessions, look out below.
ABBV was also featured recently in "5 Stocks Ready for Breakouts."
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.