Akorn, Inc. AKRX 0.12% shares are drifting higher by 0.27 percent (about $0.10 per share) Wednesday after jumping 3.2 percent Tuesday following a report the company was on the verge of a buyout deal.
Akorn shares jumped more than 3 percent in a matter of minutes on Tuesday afternoon after StreetInsider.com reported a buyout by pharmaceutical company Frensius Kabi, a subsidiary of Frensius Medical Care AG & Co. (ADR) FMS 1.4%, was “imminent.”
The Akorn/Frensius rumor first surfaced on April 7 and was reported by Bloomberg. Hours prior to the Bloomberg headline, Benzinga alerted its pro subscribers to an unusually large Akorn call purchase on the options market.
Akorn shares spiked from around $27 to $30 roughly 3.5 hours later when the Bloomberg story broke.
On April 10, Akorn confirmed it was in buyout discussions with Frensius.
The next day, Leerink analyst Jason Gerberry told clients the buyout price for Akorn could be as high as $34, but the downside if a deal falls through could be as low as $22.
So far, an official deal has yet to be announced, but Akorn shares are now up 38.5 percent since April 1.
Since April 13, Benzinga has issued…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
