Buzz Stocks: Valeant Pharmaceuticals Intl Inc, Yahoo! Inc., and L Brands Inc

Today's stocks to watch in the news include Valeant Pharmaceuticals Intl Inc (VRX), Yahoo! Inc. (YHOO), and L Brands Inc (LB)

Apr 7, 2016 at 9:45 AM
facebook X logo linkedin


Stocks are lower this morning, despite a sharper-than-forecast drop in jobless claims. Meanwhile, among specific equities in focus are drugmaker Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Internet pioneer Yahoo! Inc. (NASDAQ:YHOO), and Victoria's Secret parent L Brands Inc (NYSE:LB).

  • VRX received approval from its creditors to amend the terms of its debt and postpone its regulatory filing deadlines. As such, the stock is looking at another day of huge gains, up 11.3% out of the gate to flirt with $38.00. Year-to-date, however, Valeant Pharmaceuticals Intl Inc remains at a more than 62% deficit. This should be a boon to the bullish hopes of options traders. During the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculators have bought to open 1.78 VRX calls for every put -- a ratio that ranks in the top quartile of its annual range. However, skepticism remains on Wall Street, based on the negativity witnessed among analysts.

  • YHOO is expecting a 20% year-over-year drop in earnings and a nearly 15% fall in revenue, according to a Re/code report based on the company's financial documents. This development has the shares down 1.4% in early trading at $36.16, and set to close south of its 10-day moving average for the first time since March 15. In recent weeks, though, Yahoo! Inc. has been rallying amid rampant M&A rumblings. On the sentiment front, analysts remain firmly planted in YHOO's bullish corner, while options traders are nearing a call-skewed extreme. The stock's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.34, lower than 96% of all other readings from the past year.

  • LB reported same-store sales rose 3% in March, and also announced plans to restructure Victoria's Secret into three business units. At last check, the stock was down 0.6% at $85.55, and more than 8.5% lower in 2016. Moreover, L Brands Inc's rally attempts over the past few weeks have been contained by the 50-week moving average. Elsewhere, options traders have been placing bearish bets over bullish at an accelerated clip. LB's 10-day ISE/CBOE/PHLX put/call volume ratio of 11.04 ranks in the high 89th percentile of its annual range.
Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!
 

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