Obalon Therapeutics Inc OBLN shares rose 60 percent Wednesday morning, triggered by a Seeking Alpha post that said Johnson & Johnson JNJ could be making a bid for the company for $8 per share.
There was no source cited in the post and the author disclosed they were long Obalon's stock. Interestingly, the post was removed from Seeking Alpha, although it's unclear when it was taken down.
Penny stocks with a low float of under 20 million shares are susceptible to trader manipulation. Given the stock's recent volatility and the fact it flirted with the $1 level during this momentous trading means it could be getting targeted by momentum traders. Obalon has 12 million shares in its float.
Obalon Therapeutics closed at $1.13 per share, up 58.2 percent.
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