Buzz Stocks: Sears, Valeant Pharmaceuticals, Depomed

Today's stocks to watch include Sears Holdings Corp (SHLD), Valeant Pharmaceuticals Intl Inc (VRX), and Depomed Inc (DEPO)

Aug 20, 2015 at 10:02 AM
facebook X logo linkedin


U.S. stocks are lower, as a global sell-off and sinking oil prices once again weigh on Wall Street. Among the equities in focus are retailer Sears Holdings Corp (NASDAQ:SHLD), as well as pharmaceutical firms Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Depomed Inc (NASDAQ:DEPO).

  • SHLD is down 3.7% at $22.49, despite the retailer recording its first quarterly profit in three yearsOptimism was on the rise ahead of SHLD's earnings report, and the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.53 is at a 52-week low. In other words, SHLD's near-term option traders haven't been more call-heavy during the past year. On the charts, Sears Holdings Corp is roughly 25% lower year-to-date, and the stock is facing pressure from its descending 10-week moving average. 

  • VRX is drawing attention this morning, after the company said it will buy Sprout Pharmaceuticals -- the privately owned maker of the newly OK'd "female Viagra" -- for $1 billion in cash. VRX's CEO said the duo have been talking about a buyout for three weeks -- and it's a good thing the company struck, as Sprout's CEO said the company received a lot of looks after yesterday's FDA nod. The shares of Valeant Pharmaceuticals Intl Inc are lower with the broader equities market, down 2.9% at $237.83. The stock is up an impressive 66% in 2015, but option buyers have picked up puts over calls at a near-annual-high clip during the past two weeks, per the stock's 10-day put/call volume ratio of 4.52 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The reading ranks in the 97th percentile of its annual range.

  • Finally, DEPO's board unanimously rejected a third bid from Horizon Pharma PLC (NASDAQ:PLC), which "undervalues" the stock at $30 per share. DEPO and HZNP have gone round after round this year, and Depomed Inc shares are now sitting at $30.93, down 2.1% this morning. Amid the M&A chase, DEPO hasn't moved a whole lot since gapping higher in early July, with the stock stuck in the $30-$33 neighborhood.  

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI