Here’s Why Traders Are Fleeing From These Five Stocks on Monday

KLX Inc Falls 16% After Reporting Disappointing Earnings

KLX Inc (NASDAQ:KLXI) reported mixed results for its first quarter, with earnings of $0.42 per share on revenue of $368.2 million, beating the bottom-line estimate by $0.12 per share but missing the top-line by $15.42 million. Consolidated revenues declined by 14.7% year-over-year as the low energy prices weighed on the company’s Energy Services Group. Free cash flow was $22.2 million, while operating margin stood at 18.1%. Despite the mixed report, management believes the company’s core ASG business will still maintain low single digit long term growth in revenues and an operating margin in excess of 18 percent on a GAAP basis. Seth Klarman’s Baupost Group owned 2 million shares of KLX Inc (NASDAQ:KLXI) at the end of the first quarter.

Lower Oil Prices Weigh on Transocean 

Transocean LTD (NYSE:RIG) is 3% lower today after Seadrill Ltd (NYSE:SDRL) reported that one of its customers canceled an offshore contract for a drilling rig. Investors are afraid that the same situation could occur to Transocean LTD (NYSE:RIG) too if Brent prices remain low. Brent prices, incidentally, are down 1.7% in late afternoon trading on the back of profit taking. Carl Icahn’s Icahn Capital LP was one of the top shareholders of Transocean at the end of March.

Petrobras Declines Despite Barron’s Write-Up

Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) is 4.5% in the red despite the fact that Barron’s published a column stating that the company was under-priced given the prospect of ‘firmer oil prices and possible lower interest rates’. Although Petrobras recently added Pedro Parente as its new CEO, some traders could be taking profits after the stock’s remarkable rally in recent months. Also adding to the selling is the fact that Brent prices are in the red. Among the investors we track, 23 funds owned $224.73 million worth of Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR)’s shares, which accounted for 0.60% of the float on March 31, versus 24 funds and $165.89 million, respectively, on December 31.

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