Schaeffer's Trading Floor Blog
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With just a couple hours left in this week's trading, three of today's top market movers are gun maker Smith & Wesson Holding Corp (NASDAQ:SWHC), pharmaceutical specialist Flamel Technologies S.A. (ADR) (NASDAQ:FLML), and biopharmaceutical concern Merrimack Pharmaceuticals Inc (NASDAQ:MACK). Here's a quick roundup of how this trio of names is performing on the charts so far.

SWHC is down 10% at last check to linger near $15.30, after reporting a decline in fiscal fourth-quarter profit and offering up a lukewarm forecast for the current fiscal year. The news was followed by mixed brokerage notes, with Cowen and Company raising its price target for Smith & Wesson Holding Corp, while Northland lowered its price target. Should the equity continue to wallow in its post-earnings misery, more analysts may follow in Northland's footsteps. No fewer than six out of seven covering analysts maintain a "buy" or better rating on the equity, while the consensus 12-month price target of $18.55 represents a steep 21% premium to current trading levels.

It's been a solid year for FLML, with the shares up 86% thus far. This technical strength is in full view today, with the stock 17.1% higher at $14.95 -- after earlier tagging a six-year peak of $15.75. In spite of this uptrend, the equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.47 ranks 1 percentage point away from a 52-week peak. Simply stated, Flamel Technologies S.A. (ADR) puts have been bought to open over calls at a near-annual-high clip in recent months. At the moment, buyers can rest easy knowing they're scooping up short-term FLML options at a relative bargain, per the equity's Schaeffer's Volatility Index (SVI) of 72%, which ranks in the 26th percentile of its annual range.

In the wake of its aborted license and collaboration agreement with Sanofi SA (ADR) (NYSE:SNY) -- and subsequent price-target cut at J.P. Morgan Securities, MACKhas surrendered 13.9% today to churn near $6.79. Additional bearish brokerage notes may be on the horizon, considering three of the four covering analysts maintain a "strong buy" recommendation, with not a single "sell" to be found. Plus, the consensus 12-month price target of $13.80 more than doubles Merrimack Pharmaceuticals Inc's present price.


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