Tuesday, March 23, 2010

PMI Spikes on Freddie Mac (PMI, FRE, FNM)

Stock Assault 2.0 - Artificial Intelligence Stock Market Software

PMI Group Inc. (NYSE: PMI) is one of those companies which borrowers hate because they feel it is insurance on top of insurance.  Shares of PMI are soaring this morning on word that Freddie Mac (NYSE: FRE) approved the company as an Eligible Mortgage Insurer… PMAC will be able to write new mortgage insurance business in certain states in the event that PMI Mortgage Insurance is required to cease writing new mortgage insurance business in those states due to its inability to meet applicable regulatory capital requirements. FRE’s approval is subject to certain conditions and restrictions but this will remain in effect until December 31, 2011. Fannie Mae (NYSE: FNM) had already approved PMAC as a direct issuer of mortgage guaranty insurance.  In short, PMI gets to demand tough terms on borrowers and those getting new mortgages today are deemed the higher credit category.  PMI Group shares are up 16% at $3.66 on 3.3 million shares as of 9:55 AM EST.  The average vol ume is only 3.6 million shares and the 52-week trading range is $0.60 to $4.96.  Fannie Mae is up 2.75% at $1.12 and Freddie Mac is up 1.5% at $1.31 ahead of a testimony today.



Stock Assault 2.0 - Artificial Intelligence Stock Market Software

We have many stocks on the move this morning.  Some are secondary offerings and many are on news and analyst calls.  Below is a snapshot on each with the news, the move, relative price and average daily volume and other pertinent color where applicable.

American Superconductor Corporation (NASDAQ: AMSC) is launching after the company was raised to Buy at Jefferies.  At 8:40 there have only been about 26,000 shares traded, but the stock is up 6.6% at $27.88.  The 52-week range is $15.80 to $43.95 and the average volume is almost 1.2 million shares.

Baidu, Inc. (NASDAQ: BIDU) is rising yet again, this time on a very late upgrade from Kaufman Bros to Buy from Hold.  Shares closed at $579.72 and are up 2.5% at $594.53 on about 100,000 shares as of 8:40 AM EST.  We have the 52-week now at $628.50.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is seeinga  surprise bounce this morning after yesterday’s news that an FDA Panel at the planned meeting rejected its Pixantrone to fight non-Hodgkin’s Lymphoma.  There seemed to be a major sentiment change yesterday, but this morning at 8:41 AM EST we have seen already over 4 million shares trade hands and the stock is up 34% at $0.63.  Keep in mind that this was at $0.91 on Friday, and that was after a late day sell-off.  Shares closed at $0.471 yesterday.

Integrated Silicon Solution, Inc. (NASDAQ: ISSI) closed at $7.49 and at 8:40 AM EST we have shares up about 15% at $8.65 on almost 25,000 shares.  This is after the company raised guidance and noted that it has experienced better than expected end market demand and pricing, primarily for its DRAM products.

Jones Soda Co. (NASDAQ: JSDA) is indicated higher this morning after it ended the exclusivity provision of its potential merger deal with Reed’s (REED) .  The company will now explore an unsolicited bid by a third party to avoid the silly take-under.  No volume has been seen but the stock is indicated at $0.60 after a $0.52 close Monday.

Massey Energy Company (NYSE: MEE) filed last night to sell 8.5 million shares of common stock in a public secondary offering to fund a portion of the cash consideration related to its recently announced $960 million combined cash and stock acquisition of Cumberland Resources Corporation and affiliated companies. At 8:42 AM EST we have seen only about 12,000 shares trade but the stock is down 3% at $49.29. The 52-week range is $9.80 to $54.09 and the average volume is 4.6 million shares.

Oncothyreon Inc. (NASDAQ: ONTY) is getting whacked.  The company announced the temporary suspension of Stimuvax clinical trials by Merck Serono for Stimuvax as a result of a suspected unexpected serious adverse reaction in a patient with multiple myeloma participating in an exploratory clinical trial.  Shares had been halted and they had been down over 40% after the resumption of trading.  At 8:42 AM EST shares are down 37% at $3.00 on 62,000 shares.  The average volume here is only about 160,00 shares and the 52-week range is $1.18 to $7.77.

Sequenom Inc. (NASDAQ: SQNM) is soaring after the stock was raised to Buy from Hold at Lazard.  At 8:43 AM EST we have seen some 500,000 shares trade hands and the stock is up 11% at $6.15.

Somaxon Pharmaceuticals, Inc. (NASDAQ: SOMX) has been very active and is taking advantage of strength to raise capital, which is no surprise at all.   After the close it announced that it would sell up to 4,000,000 shares of its common stock a public secondary offering.  Traders seem to be endorsing this sale because the stock is up 3% at $8.55 on over 200,000 shares as of 8:44 AM EST.

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