Micron Stock Takes Off After Samsung Earnings Report

A short-squeeze could send Stemline stock to fresh annual highs

Managing Editor
Oct 31, 2017 at 2:50 PM
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Stocks are higher this afternoon, as the Dow Jones Industrial Average eyes its seventh straight monthly gain. Pharmaceutical concern Lannett Company, Inc. (NYSE:LCI) is tangled in legal trouble, while chip stock Micron Technology, Inc. (NASDAQ:MU) and healthcare stock Stemline Therapeutics Inc (NASDAQ:STML) are surging. Here's a quick look at what's moving shares of LCI, MU, and STML.

Lannett Stock Sinks After Company Added To Lawsuit

Lannett Company stock is down 12% to trade at $20.25, after it was reported that state attorneys had moved to expand their lawsuit alleging price fixing of generic drugs. Lannett is one of the companies now included on the lengthy list, on top of names such as Mylan. The news sends LCI stock below its 40-day moving average for the first time in over a month, and down 9% for the year.

Although the equity is short-sale restricted today, short sellers are likely cheering. Short interest increased by 4% during the last reporting period to 16.32 million shares, which represents an astounding 44% of LCI's total available float.

Micron Stock Buzzing After Upbeat Samsung Report

Micron stock is up 6.3% to trade at $44.28, and earlier hit a 16-year high of $44.49, after Samsung Electronics revealed a focus on DRAM profits in its well-received earnings report. It's been an outstanding year for Micron stock, which has tacked on over 102% year-to-date and has outperformed the broader S&P 500 Index (SPX) by more than 40 percentage points during the past three months.

Despite the recent success, Micron options traders have shown a stronger-than-usual preference for long puts over calls. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows MU with a 10-day put/call volume ratio of 0.45, which ranks 4 percentage points from a 52-week high.

Drug Trial Success Has Stemline Stock Flirting With Annual Highs

Stemline Therapeutics stock is up 28% to trade at $13.64, among the best on the Nasdaq Composite today, after the company's blood cancer drug met its main goal in a mid-stage trial. The upbeat report sends STML stock to its highest point since January, within a chip-shot of its annual high of $14.60. 

A short squeeze could help Stemline crack the $15 level for the first time in two years. Short interest increased by 6% during the last reporting period to 1.34 million shares. This represents a healthy 8.4% of STML's total available float, and it would take more than seven days for shorts to fully cover their positions, going by average daily volumes.

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