Buzz Stocks: Priceline Group Inc, Medivation Inc, and Vale SA (ADR)

Today's stocks to watch include Priceline Group Inc (PCLN), Medivation Inc (MDVN), Vale SA (ADR) (VALE)

May 4, 2016 at 10:57 AM
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U.S. stocks remain down after a disappointing drop on Tuesday, due to a combination of dreary job data and struggling markets overseas. Among equities in focus today are travel services stock Priceline Group Inc (NASDAQ:PCLN), biopharmaceutical company Medivation Inc (NASDAQ:MDVN), and mining company Vale SA (ADR) (NYSE:VALE)

  • PCLN shares are down 9.4% at $1,227.19, gapping south of their 200-day moving average for the first time since the company's last turn in the earnings confessional. Priceline Group Inc beat analysts' per-share earnings expectations, but predicted slower growth in the current quarter, due to increased marketing spending and travel timing shifts, on top of its recent shocking management affairs. Until today, Priceline Group Inc stock was riding high after a post-earnings bull gap since February, reaching a year-to-date high in mid-April. Quite a few option players may be spooked. PCLN's 10-day call/put volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) sits at 1.34, in the 79th percentile of its annual range.

  • MDVN is trading at $58.79, a 2.2% jump, on reports that the biopharmaceutical company may receive an acquisition offer from Pfizer Inc (NYSE:PFE). Just last week, healthcare company Sanofi SA (ADR) (NYSE:SNY) offered $9.3 billion, which Medivation Inc rejected as too low.  MDVN shares have been on the upswing since February, and are now flirting with 10-month highs. Medivation Inc has outperformed the greater S&P 500 Index (SPX) by an impressive 89.1 percentage points over the last 60 sessions, with 11 of 15 analysts rating the stock a "strong buy."

  • VALE is down 4.2% at $4.99, following the announcement that Vale SA (ADR) and BHP Billiton Limited (ADR) (NYSE:BHP) were hit with a $43.5 billion civil lawsuit over the collapse of a dam in a Brazilian mine last year. The catastrophe resulted in 19 fatalities and environmental damage that prosecutors likened to BP's 2010 oil spill. The shares have been stair-stepping upwards since hitting an all-time low in January, outperforming the greater SPX by 85.8 percentage points over the last 60 days, but are now running into a wall at their 80-week moving average. Options bears may stand to gain if the stock suffers, and Vale SA (ADR) has an ISE/CBOE/PHLX 10-day put/call volume ratio of 2.20, which sits in the 90th percentile of its annual range.

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