Cephalon Inc. (CEPH) NewsBite - CEPH Rises on MLNM Buyout

Posted on Thursday, April 10, 2008 10:21 AM
Cephalon (CEPH) opened at $64.94. So far today the stock has hit a low of $64.87 and a high of $66.18. CEPH is now trading at $64.73, up 0.51 (0.79%). After hitting a one-year high of $84.83 in June, the stock hit a one-year low of $56.20 in February. Shares of CEPG are trading higher today on news that Takeda Pharmaceutical, a Japanese firm, has agreed to buy competitor Millennium Pharmaceuticals (MLNM) for $25 a share, a 53 percent premium over MLNM's Wednesday closing price of $16.35. Technical indicators for CEPH are neutral and improving, while S&P gives the stock a bullish 4 Stars (out of 5) Buy rating. If you’re looking for a hedged play on this stock, consider a May bull-put credit spread below the $55 range. CEPH hasn't been below 55 at all in the past year, and could lose up to 15.0% before this trade loses money. [LHF- Seven Summits Strategic Investments NewsBite]
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