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Tickers in this Article: WAG, MYL, RPM, ANF, HUN, LDG
Shares in the companies below traded on heavy volume this morning following several major announcements. By following the volume on news based events you can find those momentum stocks that are starting to break out of a base and move higher or potential short positions that are topping out and continuing to move downward. (Use this indicator to validate a change in price direction and moving averages, check out Volume Oscillator Confirms Price Movements.)

Walgreen withdraws Bid to Purchase Longs Drug Stores
Walgreen (NYSE:WAG) announced that it is withdrawing its bid to purchase Longs Drug Stores (NYSE:LDG) for $75 per share. This exit from the bid might give investors and stakeholders a little relief due to less uncertainty about the future. Walgreen Chairman and CEO Jeffery Rein said, "While we believe we made a compelling proposal for Longs, we do not believe it would be in the best interests of Walgreen's shareholders, customers or employees to allow this situation to remain unresolved for an extended period of time." Not long ago, Longs' board declined a $71.50 per share offer from CVS in favor of the one from Walgreen. This is viewed as a positive development by investors because there will be not potential dilution to earnings, cash or an increase in overall debt.

Fundamentals not a reason for Mylan's Decline
Mylan (NYSE:MYL) said that the recent decline of shares has nothing to do with fundamentals. "We believe that the recent disproportionate decline in Mylan's stock price is unrelated to the company's business operations or fundamentals," Mylan CFO Edward Borkowski said. "Rather, we believe the decline has been driven by the need for certain institutions to meet capital requirements and by unwarranted concern regarding our capital structure." Also the company said that it swapped $500 million in floating rate debt to fixed rate debt. Shares were up 22 cents on volume of 7.4 million shares in the first four hours of trading on Thursday. What we are seeing is Mylan say that despite the recent sell off, the company is in sold financial shape and that the market reaction over the past two weeks is unfounded.

RPM International Reports a Rise in First Quarter Profit
RPM International (NYSE:RPM) announced a 1.8% increase in first quarter profit and said it is likely to have a challenging year ahead. Net profit rose to $69.5 million, or 54 cents per share, compared with $68.3 million, or 53 cents per share, from a year ago. Sales grew 5.9% in the quarter to $985.5 million. According to a FactSet poll, analysts were expecting 52 cents per share in the quarter. The company said that it expects to earn $1.75-1.85 per share on the year in a tougher economy than previously thought. Shares of RPM were up 73 cents on volume of 778,000 shares in the first four hours of trading. Despite the economic slowdown, RPM continued to outperform beyond everyone's expectations; however, the recent credit crisis could make it harder for it to beat analyst estimates in the future.

Same Store Sales Fall at Abercrombie & Fitch
Abercrombie & Fitch
(NYSE:ANF) saw September same store sales fell 14% from a year ago. This is much worse than the 8.6 % drop analysts were expecting. Shares were down $3.34 or 10.27% on heavy volume of 5.5 million shares by 1:30pm EST. Average daily volume over the last three months was 3.8 million shares. This continues to show that there is hesitancy on the part of the consumers as they rein in spending.

Huntsman Shares up on Hexion Capital Infusion
Hexion Specialty Chemicals announced today that Apollo Management will provide $540 million to help close its deal with Huntsman (NYSE:HUN). Apollo's fee waiver and equity commitment are based on the deal's completion. Earlier this year Hexion tried to exit the deal. When a court ordered Hexion to complete it, shares of Huntsman were up almost $3.00 on heavy volume of 9.3 million shares by 1:50pm EST. Average daily volume in the last three months is only 3.2 million shares. The capital infusion is a welcome sight for Huntsman investors because it ensures that the deal between Huntsman and Hexion will go through as originally planned.

Bottom Line
By following the news and monitoring high volume stocks you can find tomorrow's winners today. This requires that you must do careful analysis and study of the ever changing stock movements. Movements that are supported by high volume tend to be more sustainable.

For background reading, see Volume Rate Of Change.

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