Weight Watchers Looking Tasty As Takeove Targetr?

em>Joel Elconin is the co-host of

, a daily trading idea radio show.

Weight Watchers International

shares are trading higher by $0.77 at $4.86 in Monday's session. One day removed from making it's all time low ($4.05), the issue is trading up sharply on rumors of takeover talks being held. The hint of a takeover or merger of the company may have sent some the shorts in the issue scrambling for cover. With a short percent float of 43.27 percent and a short interest ratio (days to cover) at 11.1, some of the shorts may have decided to book some profits. This evidenced by the spike in trading volume as over 4M shares have already changed hands compared to tis 20 day average of 1.54M with three hours remaining in the session. The initial surge in premarket trading took the issue to $5.60, from it's all time low close on Friday at $4.09. However, investors looking for a pop to exit the issue seized the opportunity. During the regular, it opened at the exact high for the day ($5.22) and has retreated to $4.65 before rebounding to its current level. The current high coinicdes with its June 24 high ($5.24).