The stock has been extremely volatile over the past week. It sank 72% to $2.50 last Tuesday after U.S. regulators unexpectedly denied approval of its obesity drug Contrave.
Even savvy hedge fund trader Steven Cohen's SAC Capital Advisors, which picked up a 5% stake in the company a day ahead of the FDA decision, was caught by surprise. Buying, however, once again resumed in the stock starting Wednesday, with the share price rebounding to $3.61 on Friday. The stock was last up 8.7% at $3.94. Over 12 million shares were changing hands.
China MediaExpress (CCME) was in the spotlight after CEO Zheng Cheng defended the company against what he said was an attack by short sellers. Shares were up 4.7% to $14.55 after the CEO wrote in a letter to shareholders that short sellers "timed and coordinated their efforts" in "reckless and baseless attacks" against the company. Earlier, the stock rose to as high as $15.94.Last week, Muddy Waters Research accused China MediaExpress of "engaging in a massive 'pump-and-dump' scheme whereby it significantly inflates revenue and profits in order to enrich management through earn-outs and stock sales." Citron Research and Bronte Capital also released similarly bearish reports on China MediaExpress on Jan. 31 and Feb. 1, respectively. The biggest gainer among small-cap stocks was surgical-equipment maker Emergent (LZR). Shares were soaring 38% to $8.41 on volumes of about 300,000 shares after Universal Hospital said it will make a cash tender offer for the company at $8.76 per share after a customary 21-day go shop period. However Emergent is already being served with lawsuits for possible breaches of fiduciary duties by the board in connection to the sale.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV