Shorts Target VIVUS (VVUS) Following January Pop; May be Entering 'Oversold' Territory

January 28, 2013 12:40 PM EST
VIVUS, Inc. (Nasdaq: VVUS) is a little pressured today amid new market data on short positions in the stock.

From the end of December through January 15th, short interest on VIVUS rose 11.8 percent to 23.61 million shares. The number is equal to about 23.55 percent of float for VIVUS.

Traders might have been a near-term top in VIVUS after the stock spiked higher on rumors that a big pharmaceutical company might be taking interest. Potentially, $15 might be a key activity point for shorts, though there's no immediate danger of getting above that level with VIVUS trading around $12 recently.

A quick technical note, the 14-day money flow index on VIVUS has shares nearing an oversold state, with the MFI reading at 21 percent.

Recent data out of VIVUS and analysts has Belviq with mixed data in terms of prescription growth.

Peers Arena Pharma (Nasdaq: ARNA) and Orexigen (Nasdaq: OREX) also saw some movement. Arena's short interest rose 1.5 percent to 53.37 million shares, or 24.7 percent of float, while Orexigen's short interest fell 4 percent to 8.78 million shares, or 13 percent of float.

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