Monday, June 25, 2012

Hot Stocks Of The Day (ARNA, SFT, AOL, GEOY)

Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) continued to trade on volatile note and was recently trading lower by 2.13% to $9.67 after surging about 5% earlier in the session. On Friday, the stock ended its 10-day winning streak, which provided a rally of over 53% as investors are optimistic on the company’s upcoming obesity pill, for which the FDA is all set to announce to its final decision whether to approve it or not on June 27. Undoubtedly, the decision is going to be very critical from investors’ point of views. But the key question is has optimistic decision has already priced into the stock? It’s tough to comment on that. But, ARNA is the stock to watch out for throughout the week.
Quest Software, Inc.(NASDAQ:QSFT) added 5.28% to $27.60 and made a new 52-week high of $27.75. The company’s secret strategic admirer comes back with an increased $2.32B bid for the company, which is higher than the $2.17B proposed by P-E firm Insight. The suitor, possibly Dell (DELL), offered $27.50/share, or a 5% premium to Quest's Friday close of $26.22.
AOL, Inc.(NYSE:AOL) is down 1.25% to $26.82 as the company will reportedly launch a stock buyback this week to start returning part of the $1.056B windfall it received from its patent sale to Microsoft to shareholders. The cash from the sale, which helped management thwart Starboard Value's proxy campaign, makes up a large chunk of AOL's current $2.5B market cap.
GeoEye Inc.(NASDAQ:GEOY) plunged 27.50% after r disclosing a government agency won't exercise a renewal option for a satellite imagery program, and is instead proposing less lucrative short-term contracts. In addition, the agency won't be providing cost share funding for an upcoming satellite launch. Benchmark is downgrading shares to Hold, and thinks GeoEye's 2013 bond payments are now at risk.
Immersion Corporation(NASDAQ:IMMR) lost 7.56% to $6.48 after analyst at Capstone Investments downgraded the stock to Sell. Reports of of weakening smartphone sales growth are a negative for Immersion, since the company depends on royalties on devices that use its haptic feedback technology.

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