According to Tanzeel Akhtar of Benzinga, the reason for OBLN’s sudden price increase was due to a rumor started on SeekingAlpha which claimed Johnson and Johnson was considering buying OBLN for $8.00 per share.
The article has since been removed, which raises some red flags. Also, if you go to OBLN’s website and look at their news page, you don’t see anything current. In fact, the last time OBLN reported a material event was almost 1 year ago..
OBLN manufactures a novel weight loss product, what they call “The Obalon Balloon System”, an inflatable balloon that stops you from eating.
Honestly, before watching this video, the whole thing looked like a complete scam, but after watching it, you can kind of see how it might work– key word there might. This is America, and if that’s what you wanna do, then that’s what you wanna do.
What is open to debate is whether this rumor is true. Did Johnson and Johnson put in a bid at $8 per share? If they did, why would the OP remove the post? Seems pretty strange don’t you think? As it usually goes with online rumors in the stock market, there was no source, so we can never truly be sure what happened. If anybody can find the original article, please send it to us, we would love to read it. Until the time everyone, enjoy the rest of your day[