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Friday was a big day for Vivus (NASDAQ:VVUS). At 2:22 pm, the company announced that the FDA had approved Stendra, also known as Avanafil, a new drug to treat erectile dysfunction. Stendra is a pill that patients take on an as-needed basis 30 minutes before sexual activity. The drug is marketed by Vivus.

The strange thing is, at 11:53 am, more than two hours earlier, the following Tweet crossed the wires:

Bertha CoombsBertha Coombs‏@coombscnbc

Vivus $VVUS shares getting a lift on FDA approval of its ED drug Avanafil.

12:53 PM - 27 Apr 12via TweetDeck · Embed this Tweet

A search of related material from the theflyonthewall.com yields the following information:

News Breaks

April 27, 2012

14:09 EDT

VVUS

theflyonthewall.com:

FDA confirms approval of VIVUS erectile dysfunction drug

The FDA confirmed that it approved Stendra, also known as Avanafil, a new drug to treat erectile dysfunction. Stendra is a pill that patients take on an as-needed basis 30 minutes before sexual activity. Stendra is marketed by VIVUS. :theflyonthewall

April 27, 2012

14:09 EDT

VVUS

theflyonthewall.com:

FDA confirms approval of VIVUS erectile dysfunction drug

Subscribe for More Information :theflyonthewall.com

13:21 EDT

VVUS

theflyonthewall.com:

VIVUS halted, pending news

Subscribe for More Information :theflyonthewall.com

Meanwhile, trading in Vivus was not halted by NASDAQ until 13:21 hours (1:21 ET), more than an hour after Coombs Tweet.

Halt Date

Halt Time

Issue Symbol

Issue Name

Market

Reason Code

Pause Threshold Price

Resumption Date

Resumption Quote Time

Resumption Trade Time

04/27/2012

13:21:17

VVUS

Vivus, Inc.

NASDAQ

T3

04/27/2012

15:35:00

So, what is going on here? How did Coombs come by this information? A follow-up Tweet provides some insight:

Bertha CoombsBertha Coombs‏@coombscnbc

@VinceAdams Our producer extraordinaire got the confirmation on Vivus approval. Kudos to @ruthcoxeter !

2:15 PM - 27 Apr 12via TweetDeck · Embed this Tweet

So, someone has some 'xplainin' to do.

And the impact on the stock's price? Here's the one-day chart for VVUS for Friday, April 27, 2012 courtesy Marketwatch.com.

(click to enlarge)

It's clear that there was a burst of activity that took the stock to just short of $26.25 around 12:45 pm, followed by an abrupt $1.50 selloff and a rise back to just over $25.50 before trading was halted. Aberrant, to be sure.

What happened? Who knows? I'll let the SEC and FINRA sort it out.

Frankly, I am skeptical we ever will learn the answers.

Technical Analyses

The Daily chart for VVUS, courtesy StockChart.com, is below. The stock is approaching an overbought condition at the same time that the MACD has turned positive, suggesting it has room to run. The gap that opened last February appears to be a 'breakaway gap,' and so, I would not expect it to be closed.

The Weekly chart shows a stock that is already overbought, with an MACD suggesting that the smart money soon may begin distributing shares to weaker (retail) hands. This is not a time for retail investors to become adventurous.

Source: Vivus: Who Leaked Word Of Stendra Approval?

Additional disclosure: I do not own VVUS and do not intend to initiate a position within 72 hours of the time of publication of this article. I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research. Investing includes risks, including loss of principal.