Buzz Stocks: Mattress Firm, Mondelez, and Marvell

Today's stocks to watch include Mattress Firm Holding Corp (MFRM), Mondelez International Inc (MDLZ), and Marvell Technology Group Ltd. (MRVL)

Sep 11, 2015 at 10:04 AM

U.S. stocks are slightly lower this morning, but still have an eye on a weekly win. The overarching mood is cautious, as investors look ahead to next week's Federal Open Market Committee (FOMC) meeting. Today's Buzz Stocks is brought to you by the letter M, as the equities in focus are mattress retailer Mattress Firm Holding Corp (NASDAQ:MFRM), food-and-beverage baron Mondelez International Inc (NASDAQ:MDLZ), and semiconductor concern Marvell Technology Group Ltd. (NASDAQ:MRVL) .

MFRM is down 17.2% at $49.99 this morning after missing analysts' second-quarter profit estimates, and earlier hit a new annual low of $49.55. Mattress Firm Holding Corp also lowered its full-year earnings outlook, further exacerbating the situation. Bearish option players stocked up on MFRM ahead of the report, as its 10-day put/call volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 3.92 indicates puts bought to open outstripped calls by a nearly 4-to-1 pace over the last couple of weeks. Technically, the stock is trading well south of support from its 20-month moving average, which it has not finished a month below since October 2013.

Yesterday, MDLZ reaffirmed its 2015 outlook and 2016 margin target; today, the company is in the news thanks to some comments from Bill Ackman. Speaking on CNBC this morning, the hedge-fund leader said Mondelez International Inc could be a takeover target, and named Kraft Heinz Foods Co (NYSE:HNZ) as a potential suitor. Near-term option players maintain a somewhat bearish stance toward MDLZ, as the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.34 is higher than 87% of the readings taken during the past 52 weeks. At last check, the stock was 0.2% lower at $42.30.

MRVL plummeted to a new multi-year low of $8.21 once the opening bell sounded, after announcing that it has launched an internal accounting investigation and cautioned that it will report a second-quarter loss. In response to the news, Needham cut Marvell Technology Group Ltd. to "hold" from "buy," while Susquehanna lowered it to "neutral" from "positive" and issued a price-target cut to $9 from $16 (echoing a similar move made by J.P. Morgan Securities last week). At last check, MRVL is off 15.8% at $8.88.

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