Buzz Stocks: TESARO Inc, Lipocine Inc, and Energy Transfer Equity LP

Today's stocks to watch in the news include TESARO Inc (NASDAQ:TSRO), Lipocine Inc (NASDAQ:LPCN), and Energy Transfer Equity LP (NYSE:ETE)

Jun 29, 2016 at 9:29 AM
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Dow futures are signaling another triple-digit advance, as "Brexit" anxiety eases and oil prices rise. Meanwhile, among specific equities making news today are biotechs TESARO Inc (NASDAQ:TSRO) and Lipocine Inc (NASDAQ:LPCN), as well as energy stock Energy Transfer Equity LP (NYSE:ETE).

  • TSRO has surged 84% in electronic trading, after the company's ovarian cancer treatment, niraparib, met its main goal in a late-stage study. While the stock has been a long-term laggard -- down 37% year-over-year, based on last night's close at $37.21 -- today's projected price surge should push the shares past previous congestion in the $48-$49 region. This area capped rally attempts in late March and early April. Additionally, TESARO Inc could benefit from a round of short covering. Currently, 24.3% of the equity's float is sold short, or 14.2 times TSRO's average daily pace of trading.

  • LPCN is bracing for a 55% drop out of the gate -- and a move to record lows -- on news the Food and Drug Administration (FDA) did not approve Lipocine Inc's oral testosterone replacement drug, LPCN 1021, "in its present form." Today's expected price action just echoes the equity's longer-term technical troubles, with LPCN off more than 67% from its mid-September two-year high of $19.23 to close last night at $6.27. Options traders, meanwhile, have shown a preference for long calls over puts in recent weeks. Specifically, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 2,392 call options in the last 10 sessions, compared to 1,863 put options.

  • Just days after receiving a legal stamp of approval, ETE has ended its roughly $33 billion merger deal with Williams Companies Inc (NYSE:WMB), citing "failure of conditions." At last check, shares of ETE were up 4% ahead of the bell, after closing last night at $14.41. The stock could certainly use the boost, considering it has surrendered more than half its value over the past 12 months under the weight of falling oil prices. Short-term options traders, meanwhile, are more put-heavy than usual toward the security. Energy Transfer Equity LP's Schaeffer's put/call open interest ratio (SOIR) of 0.78 ranks higher than 79% of all comparable readings taken over the past year.
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