ARCA, FortuNet: Midday Volume Plays

NEW YORK (TheStreet) -- Several stocks trading under $5 were moving on above-average volume during Monday's session.

ARCA Biopharma (ABIO Quote) surged by $1.87, or 83.1%, to $4.12 after the company was given fast-track designation for its experimental drug Gencaro, a treatment for chronic heart failure. ARCA said it will submit a study protocol to the Food and Drug Administration in the fourth quarter and expects it will begin the proposed trial in late 2010 or the first half of 2011. Volume topped 2.29 million shares, compared to the 50-day average daily volume of 31,000, according to the Nasdaq.

Network Engines (NENG Quote) rose by 30 cents, or 23.4%, to $1.58 in the absence of any company-specific news. Investors posting on Internet message boards attributed the jump to speculators pumping the stock, making it a momentum play. Volume topped 2.09 million shares, compared to the 50-day average daily volume of 91,000, according to the Nasdaq.

FortuNet (FNET Quote) added 40 cents, or 31.1%, to $1.68 after Yuri Itkis Gaming Trust said it intends to make a tender offer for all outstanding FortuNet shares for $1.70 each. Volume topped 479,000 shares, compared to the 50-day average daily volume of 224,000, according to the Nasdaq.

Krispy Kreme Doughnuts (KKD Quote) slipped by 8 cents, or 2.4%, to $3.27 after rising nearly 7% earlier in the session on market chatter that Wendy's/Arby's Group (WEN Quote) is in discussions to acquire the company, according to Briefing.com. Volume topped 1.78 million shares, compared to the three-month average daily volume of 486,000, according to Yahoo! Finance.

TTI Team Telecom International (TTIL Quote) fell by 28 cents, or 13%, to $1.88, giving back some of last week's gains. On Thursday, TTI reported third-quarter earnings of 7 cents a share, beating the lone analyst estimate for the company to break even. The earnings beat sparked a two-day rally that saw shares climb 83%. Volume topped 711,000 shares Monday, compared to the 50-day average daily volume of 180,000, according to the Nasdaq.

Poniard Pharmaceuticals (PARD Quote) lost 18 cents, or 7.1%, to $2.35 after the company said it sold 3.46 million common shares to Azimuth Opportunity for $2.15 a share. Poniard said the $7.3 million in net proceeds from this sale to focus on regulatory and partnering activities for picoplatin, clinical development, other general corporate purposes and working capital. Volume topped 3.83 million shares, compared to the 50-day average daily volume of 3.05 million, according to the Nasdaq.

-- Written by Robert Holmes in New York.

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