Rumor Mill At It Again In Weight Watchers

Weight Watchers International, Inc. WTW shares are trading higher by $0.45 (4 percent) at $12.40 in Friday's session.

A constant target of rumor-mongers has the the issue in the spotlight once again, as unconfirmed rumors say the company is a takeover target or in talks with bankers to go private. Similar chatter circulated Wall Street on October 5 and had the issue spike to $11.44 before ending that session at $10.96. By the end of the month, the issue was back at the $10.00 area.

Off the open, the issue matched Thursday's low at $11.80 and had not yet reached $12.00, when the rumor was reported around 10:40 a.m. ET. So far, the ensuing rally has not yet reached Thursday's high of $12.69, only reaching $12.59 before retreating to its current level. Thus, casting some doubt on the validity of the rumor.

If the rally continues, there may be additional resistance at its January 18 high ($12.87) as well as its January 12 high at $13.49.

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