Buzz Stocks: Ericsson, Newell Brands, IntelliPharmaCeutics

Today's stocks to watch in the news include Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Newell Brands Inc (NYSE:NWL), and IntelliPharmaCeutics Intl Inc (USA) (NASDAQ:IPCI)

Oct 12, 2016 at 9:56 AM
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U.S. stocks are lower ahead of today's release of the Federal Open Market Committee (FOMC) September meeting minutes. Among specific equities in focus today are Swedish telecommunications stock Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), household goods producer Newell Brands Inc (NYSE:NWL), and IntelliPharmaCeutics Intl Inc (USA) (NASDAQ:IPCI).

  • ERIC is plunging after issuing a profit warning, with the American shares of the telecommunications stock trading down 17.7% at $5.77, a seven-year low. Telefonaktiebolaget LM Ericsson said its earnings for the quarter will come in "significantly" lower than expected, as sales continue to slump, despite ERIC's cost reduction programs. ERIC has struggled over the past 12 months, with the shares losing nearly half of their value year-over-year, and following a progression of lower lows since an April 2015 bear-gap. In ERIC's option pits, near-term traders have been more call-skewed than usual, with ERIC sporting a Schaeffer's put/call open interest ratio (SOIR) of 0.44, which sits in the bottom 10% of its annual range.

  • NWL is up 1.8% at $51.26, after the household goods producer announced it would be selling its tools business to Stanley Black & Decker, Inc. (NYSE:SWK) for $1.95 billion in cash. NWL is having a standout year, up nearly 20% in the last 12 months, and notching an all-time high of $55.45 in mid-August. Analysts seem to think this upside will continue, with 15 of 16 rating Newell Brands Inc shares a "buy" or better, with an average price target of $59.57, a more than 15% premium on the shares current perch. 

  • IPCI is up 12.7% at $3.19 -- and just off an annual high of $3.33 -- after inking an exclusive, 10-year licensing deal with Mallinckrodt PLC (NYSE:MNK) that gives MNK U.S. distribution rights for some of IPCI's generic extended-release medications. IPCI will receive $3 million up front, and the deal includes a long-term profit-sharing agreement. IntelliPharmaCeutics Intl Inc (USA) is up over 67% year-over-year, and hopes to end atop the $3.20 area, which stifled its February rally. In the option pits, while absolute volume is light, calls have been the options of choice, with 98.90 bought to open for every put over the last 50 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX).

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