Leon Cooperman Lawsuit: 5 Stocks That Will Get Crushed if Omega is Forced to Liquidate

#3 PennyMac Financial

Omega Advisors also held a 11.2% stake in PennyMac Financial Services Inc (NYSE:PFSI) at the end of June. According to its most recent 13F filing, the fund held 2.47 million shares worth some $30.9 million. In this case, Leon Cooperman’s investment is 17.65 times larger than the stock’s average daily trading volume, which is estiamted at $1.75 million. Analysts at Citigroup have recently reiterated their ‘Buy’ rating on PennyMac Financial Services Inc (NYSE:PFSI) and have boosted their price target from $16 to $20 per share. Piper Jaffray is also optimistic about this stock, as the firm has restated its ‘Overweight’ rating and the $20 price target. Shares are currently up 16% for the year. At the end of June, roughly 33% of PennyMac Financial Services Inc (NYSE:PFSI) common stock was held by 12 of the funds in our database, unchanged over the second quarter. Richard Mashaal’s Rima Senvest Management also holds a sizable position, having indicated ownership of 2.05 million shares in its latest 13F filing.

#2 Loral Space & Communications

Loral Space & Communications Ltd. (NASDAQ:LORL), a satellite communications company, is also in danger of seeing its stock battered in case Omega goes under. At the end of the second quarter, the fund held a $61.2 million position, while he average daily trading volume is estimated at $2.05 million, resulting in a value-to-trading-volume ratio of 29.86. At the beginning of August, Loral Space & Communications Ltd. (NASDAQ:LORL) reported financial results for the second quarter. The company posted a net income of $32.6 million or $1.03 per share, up from $0.58 per share it reported for the same period of 2015. Despite the positive developments, the stock is still struggling to come back from the January selloff. Shares are currently trading around the $37.5 level, down by 6.6% for the year. The hedge fund sentiment towards Loral Space & Communications Ltd. (NASDAQ:LORL) cooled down a bit during the second quarter, as the number of long hedge fund positions fell to 23 from 25 at the end of March. James Dondero is one of the hedge fund managers keeping tabs on this stock, with his fund, Highland Capital Management, holding 2.12 million shares as of the end of June.

#1 Nordic American Offshore

Nordic American Offshore Ltd (NYSE:NAO), a company that operates platform supply vessels, faces the biggest danger of them all. According to its latest 13F filing, Omega held 1.6 million shares at the end of June, valued at approximately $7.53 million. The average daily trading volume of this stock in US dollars is $201,416, which means that Cooperman’s investment is 37.39 times larger and a fire sale could crush the stock. The hedge funds tracked by Insider Monkey are not very fond of Nordic American Offshore Ltd (NYSE:NAO). At the end of June, only five of them had this stock in their portfolio, unchanged from the end of March. Jim Simons‘ Renaissance Technologies had a small position that amounted to 194,600 shares worth $917,000 at the end of the quarter. Although its a rather small company, sporting a market cap of $76.4 million, Nordic American Offshore Ltd (NYSE:NAO) pays an annual dividend of $0.40 per share, which provides shareholders with a juicy 10.6% yield. The stock is currently trading close to all-time lows, as it has been in a downtrend since July 2014, dropping by roughly 82%. In the last three quarter, Nordic American Offshore has posted a string of disappointing results, failing to meet Wall Street’s earnings expectations. For the second quarter, the company reported a loss of $0.36 per share, while analysts had projected a loss of $0.19 per share. Revenue for the period fell 55% year-over-year to $5.07 million.

Disclosure: none.