Buzz Stocks: Valeant Pharmaceuticals Intl Inc, Relypsa Inc, and Sunedison Inc

Today's stocks to watch in the news include Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Relypsa Inc (NASDAQ:RLYP), and Sunedison Inc (NYSE:SUNE)

Apr 15, 2016 at 9:29 AM
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As traders exercise caution ahead of this weekend's meeting of oil producers in Doha, U.S. stocks are set to start the day lower. Among equities in focus today are biotech stocks Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Relypsa Inc (NASDAQ:RLYP), as well as solar energy concern Sunedison Inc (NYSE:SUNE).

  • VRX is up 2.7% ahead of the bell, after closing at $32.37 Thursday, on news that the company is working with investment banks -- including Goldman Sachs Group Inc (NYSE:GS) -- to review options, which could include a sale of some of its businesses. Valeant Pharmaceuticals Intl Inc has been struggling since mid-2015, amid a series of missteps, and most recently received a notice of default from a larger bondholder. But in the options pits, traders on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been buying calls at a faster-than-usual clip. The stock's 10-day call/put volume ratio of 2.55 sits higher than 84% of all readings in the past year.
  • RLYP is set to drop 8.6% at the bell, amid rumors that it has abandoned Centerview Partners Holdings LLC as an M&A advisor. Fresh reports that Relypsa Inc may be exploring a sale -- echoing an old rumor -- helped the shares pop 68% in a single day earlier this month. But short sellers have been betting hard against RLYP lately, increasing their positions by nearly 18% during the two most recent reporting periods. Short interest now accounts for over 45% of the stock's available float, or more than seven sessions' worth of trading, at RLYP's average daily volume. The equity settled at $22.08 Thursday, atop recent support at its 200-day moving average -- a foothold the shares may struggle to keep today.
  • SUNE is set to give up 30.3% when the market opens, after reporting that it is still in bankruptcy loan negotiations with creditors. Sunedison Inc also said it is targeting a 50% reduction in headcount from its October 2015 levels, and has already achieved a reduction of 40%. The shares ended Thursday at $0.59 -- a 59% gain for the session -- after reporting that its accounting probe found no evidence of fraud. Still, the stock has shed a whopping 98% of its value in the past year, and while some option bulls have been picking up calls, near-term traders are unusually put-skewed. SUNE's Schaeffer's put/call open interest ratio (SOIR) of 1.07 is in the 95th percentile of its annual range.
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