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5 Large Volume Stocks For Oct. 6 Morning
Big moves up and down in share prices need to be supported by increasing volume or the move will rarely be sustainable. One way to determine strong trends and get on board long upward or downward moves is to look at stocks that are trading a large amount of volume early on in the day, when compared with their average volume. This will help us set the best moves apart from the rest. (For background reading, see Volume Rate Of Change.)
Here are five stocks that were trading on very large volume this morning.
Oil Moves Energy Trusts
Shares of energy trusts across the board traded heavily this morning, as oil prices fell below $90 per barrel, the weakest oil has been in eight months. Energy trusts engage in the acquisition, development, production and marketing of oil and natural gas. As the price of oil continues to fall on fear that global recession, this will reduce demand for energy, trusts such as these continue to fall on heavy volume. As of noon today, shares of Harvest, Provident, and Pengrowth Energy Trusts were down 20%, 17%, and 14% respectively; all trading at more than triple their three-month average daily volume. All are near the bottom of their 52 week ranges.
Eli Lilly buys ImClone
ImClone shares came near the top of their 52-week range on news that Eli Lilly (NYSE:LLY) will buy up the biotechnology firm for more than $6 billion or $70 per share. This deal comes in much higher than the previous offer of $62 per share by Bristol-Myers Squibb (NYSE:BMY). Volume traded in the morning more than tripled the average daily volume, as investors piled into the company on this news. This deal will round out Eli Lilly's cancer treatment portfolio, creating as John Lechleiter, Lilly's CEO, says "one of the leading oncology franchises in the biopharmaceutical industry". Shares of Eli Lilly traded down over 5% this morning after news of the acquisition hit the airwaves. (To learn more about stocks in this industry, check out our Biotechnology Industry Handbook.)
A-Power Energy Generation Systems
Early this morning, A-Power Energy issued a press release stating that it had received a contract for 50 Wind Turbines with China National Automation Control System (CACS). A-Power, the largest provider of distributed power generation systems in China, made this deal in addition to five already contracted to be sold to CACS this year. In aggregate, letters of intent with CACS and other parties provide for 325 wind turbines to be sold over the coming months. Shares of A-Power traded heavily this morning, as news hit of this deal; however, the trading was not to the upside. At the time of writing, shares were down almost 15% from yesterday's close. It seems that this good news was not enough to pull the stock out of the widespread market downturn occurring today. The Nasdaq, on which A-Power trades, was down more than 5% this morning as the global credit crisis continues to instill fear into investors across the world.
Add Your Two Cents
Will increasing volume be enough to sustain the current trends of these stocks? Be sure to join me (aytonmm) in the FREE Stock Picking Community to share your thoughts and see what other investors are saying.
Here are five stocks that were trading on very large volume this morning.
|
Company |
Shares Traded* |
% of Average Volume (3 month) |
|
Harvest Energy Trust (NYSE:HTE) |
3,646,361 |
345% |
|
Provident Energy Trust (NYSE:PVX) |
3,972,041 |
325% |
|
ImClone Systems (Nasdaq:IMCL) |
7,049,570 |
317% |
|
Pengrowth Energy Trust (NYSE:PGH) |
4,303,415 |
314% |
|
A-Power Energy Generation Systems (Nasdaq:APWR) |
2,640,543 |
258% |
|
* Data as of 12:22 pm EDT October 6, 2008 |
||
Oil Moves Energy Trusts
Shares of energy trusts across the board traded heavily this morning, as oil prices fell below $90 per barrel, the weakest oil has been in eight months. Energy trusts engage in the acquisition, development, production and marketing of oil and natural gas. As the price of oil continues to fall on fear that global recession, this will reduce demand for energy, trusts such as these continue to fall on heavy volume. As of noon today, shares of Harvest, Provident, and Pengrowth Energy Trusts were down 20%, 17%, and 14% respectively; all trading at more than triple their three-month average daily volume. All are near the bottom of their 52 week ranges.
Eli Lilly buys ImClone
ImClone shares came near the top of their 52-week range on news that Eli Lilly (NYSE:LLY) will buy up the biotechnology firm for more than $6 billion or $70 per share. This deal comes in much higher than the previous offer of $62 per share by Bristol-Myers Squibb (NYSE:BMY). Volume traded in the morning more than tripled the average daily volume, as investors piled into the company on this news. This deal will round out Eli Lilly's cancer treatment portfolio, creating as John Lechleiter, Lilly's CEO, says "one of the leading oncology franchises in the biopharmaceutical industry". Shares of Eli Lilly traded down over 5% this morning after news of the acquisition hit the airwaves. (To learn more about stocks in this industry, check out our Biotechnology Industry Handbook.)
A-Power Energy Generation Systems
Early this morning, A-Power Energy issued a press release stating that it had received a contract for 50 Wind Turbines with China National Automation Control System (CACS). A-Power, the largest provider of distributed power generation systems in China, made this deal in addition to five already contracted to be sold to CACS this year. In aggregate, letters of intent with CACS and other parties provide for 325 wind turbines to be sold over the coming months. Shares of A-Power traded heavily this morning, as news hit of this deal; however, the trading was not to the upside. At the time of writing, shares were down almost 15% from yesterday's close. It seems that this good news was not enough to pull the stock out of the widespread market downturn occurring today. The Nasdaq, on which A-Power trades, was down more than 5% this morning as the global credit crisis continues to instill fear into investors across the world.
Add Your Two Cents
Will increasing volume be enough to sustain the current trends of these stocks? Be sure to join me (aytonmm) in the FREE Stock Picking Community to share your thoughts and see what other investors are saying.
by
Ayton MacEachern
Ayton MacEachern is an Equity Trader, previously working as the Senior Financial Editor at Investopedia.com. After receiving his bachelor's degree in financial services from Mount Royal College in Calgary, Alberta, MacEachern began his career at an international securities trading firm. MacEachern has worked in a variety of roles in the financial industry, including workers' compensation insurance underwriting, financial planning, and equity, currency and options trading. MacEachern is also Co-Founder of theskipper.ca, a source for online outdoor education.
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