Hot Stocks of the Week: KMA IMCL CRDC
Friday September 14, 6:00 pm ET
KMG America Climbs on Acquisition by Humana; ImClone Systems Jumps on Drug News
NEW YORK (AP) -- Acquisitions and drug news played major roles for some of the most widely traded stocks of the week.
Shares of KMG America Corp. recorded big gains after health insurer Humana Inc. said Friday it agreed to buy the insurance benefits company for about $137.7 million in cash, or $6.20 per share.
The stock jumped 66 percent to close at $5.81 on Monday on around 37 times average trading volume.
Shares inched slightly higher Tuesday, and trading volume remained above normal, but declined as the week continued. KMG's stock declined 3 cents to $5.86 Friday and finished around 68 percent higher for the week.
Shares of ImClone Systems Inc. rallied 18 percent on Tuesday, after the company said a late-stage study showed its drug Erbitux improved survival for lung cancer patients, and a Bear Stearns analyst upgraded the stock. Shares hit a 52-week high of $47.22 earlier in the trading session with volume around 13 times its average.
Shares declined steadily as the week continued, but trading volume jumped on Friday when a Friedman Billings Ramsey analyst downgraded the stock, saying that experts believe they will probably not use the company's Erbitux to treat most cases of lung cancer.
On Friday, shares declined $4.46, or 10.3 percent, to $39.02, but still finished 3 percent higher for the week.
Cardica Inc. shares surged Wednesday, after its device used in heart surgery was approved for sale in the European Union. Its C-Port Flex A system is designed to automatically attach blood vessels and grafts during less-invasive heart-bypass operations.
The stock climbed nearly 16 percent to $9.99 in trading volume more than 24 times greater than the stock's 100-day average.
Trading volume and shares settled as the week continued. The stock lost 23 cents, or 2.4 percent, to $9.18 on Friday, but still finished around 6 percent higher for the week.
Shares of General Motors jumped Thursday when a Citi Investment Research analyst upgraded the stock to "Buy" from "Sell." Analyst Itay Michaeli was upbeat on expectations of positive results from contract talks with the United Auto Workers and progress in the Detroit company's restructuring. GM shares rose $3.04, or 10.1 percent, to $33.29 in nearly 38 times average trading volume.
On Friday, the stock rose 93 cents, or 2.8 percent, to $34.22, still in above average trading volume. Shares finished on Friday around 13 percent higher for the week.
Tween Brands Inc. on Friday said it expects the benefit of a newly authorized accelerated share repurchase program to boost third and fourth quarter earnings. Shares of the apparel retailer rose $2.41, or 8.8 percent, to $29.96.
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