Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Whenever a company announces that it is being taken over by another, its stock price usually jumps to reflect the takeover premium being paid. Because this is usually a very profitable event for shareholders, analysts speculate beforehand which companies they believe are likely to be taken over.

We compiled a list of rumored potential takeover/leveraged buyout (LBO) targets from various sources including CNN Money and Minyanville. We then screened these names for those with increasing shares shorted month-over-month. This probably indicates that the share prices of these companies has had downward pressure that can make the companies' valuations more attractive for a takeover.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are attractive takeover candidates? Use this list as a starting point for your own analysis.

1. Alnylam Pharmaceuticals, Inc. (ALNY): Focuses on the discovery, development, and commercialization of novel therapeutics based on RNA interference. Takeover/LBO rumor sourced from Seeking Alpha. Shares shorted have increased from 3.09M to 3.42M over the last month, an increase which represents about 1.01% of the company's float of 32.73M shares.

2. Cirrus Logic Inc. (CRUS): Develops high-precision analog and mixed-signal integrated circuits. Takeover/LBO rumor sourced from Seeking Alpha. Shares shorted have increased from 6.79M to 7.89M over the last month, an increase which represents about 1.73% of the company's float of 63.50M shares.

3. E-Commerce China Dangdang Inc. (DANG): Operates as a business-to-consumer e-commerce company in the People's Republic of China. Takeover/LBO rumor sourced from Seeking Alpha. Shares shorted have increased from 5.69M to 6.74M over the last month, an increase which represents about 3.77% of the company's float of 27.84M shares.

4. Gannett Co., Inc. (GCI): Operates as a media and marketing solutions company in the United States and internationally. Takeover/LBO rumor sourced from Wall St. Cheat. Shares shorted have increased from 18.99M to 23.33M over the last month, an increase which represents about 1.83% of the company's float of 236.62M shares.

5. Human Genome Sciences Inc. (HGSI): Operates as a biopharmaceutical company. Takeover/LBO rumor sourced from Minyanville. Shares shorted have increased from 32.24M to 36.51M over the last month, an increase which represents about 2.16% of the company's float of 197.99M shares.

6. James River Coal Co. (JRCC): Engages in mining, processing, and selling bituminous, steam, and industrial grade coal in eastern Kentucky and in southern Indiana. Takeover/LBO rumor sourced from CNBC. Shares shorted have increased from 10.10M to 10.40M over the last month, an increase which represents about 1.05% of the company's float of 28.52M shares.

7. Lexicon Pharmaceuticals, Inc. (LXRX): Focuses on the discovery and development of drug candidates for the treatment of various human diseases. Takeover/LBO rumor sourced from Minyanville. Shares shorted have increased from 9.37M to 11.60M over the last month, an increase which represents about 1.6% of the company's float of 139.12M shares.

8. Research In Motion Limited (RIMM): Designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. Takeover/LBO rumor sourced from Wall Street Daily. Shares shorted have increased from 36.60M to 47.94M over the last month, an increase which represents about 2.47% of the company's float of 459.41M shares.

9. RadioShack Corp. (RSH): Engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Takeover/LBO rumor sourced from CNN Money. Shares shorted have increased from 16.31M to 17.81M over the last month, an increase which represents about 1.51% of the company's float of 99.27M shares.

10. Savient Pharmaceuticals, Inc. (SVNT): Focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. Takeover/LBO rumor sourced from Minyanville. Shares shorted have increased from 27.32M to 28.19M over the last month, an increase which represents about 1.57% of the company's float of 55.48M shares.

11. Volterra Semiconductor Corporation (VLTR): Engages in the design, development, and marketing of analog and mixed-signal power management semiconductors for the computing, storage, networking, and consumer markets. Takeover/LBO rumor sourced from EE Times. Shares shorted have increased from 1.34M to 1.60M over the last month, an increase which represents about 1.09% of the company's float of 23.83M shares.

*Short data sourced from Yahoo Finance, all other data sourced from Finviz.

Source: 11 Takeover/LBO Targets With Increasing Short Interest