This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Luna Innovations: Pump Up the Volume

ROANOKE, Va. ( TheStreet) -- Luna Innovations (LUNA - Get Report) was trading sharply higher on above-average volume, buoyed by optimism that the company would settle a damaging lawsuit and avoid a collapse.

The Roanoke Times last week reported that Luna Innovations and Hansen Medical (HNSN - Get Report) "have developed a framework for settlement" that would reduce a $36.3 million jury verdict against Luna to a more manageable sum, according to a letter written to bankruptcy court Judge William Stone by attorneys on both sides of the case.

In 2006, Luna was set to apply its nanotechnology instruments to assist Hansen in developing catheters used for heart surgery, but the deal fell apart after Hansen accused Luna of sharing trade secrets with another company. A jury eventually ruled against Luna, and the company filed for Chapter 11 bankruptcy protection in July.

News of a possible settlement had Luna shares rallying sharply higher on big volume. Luna was lately rising 39 cents, or 17.9%, to $2.57. Earlier, the stock touched an intraday high of $3.25.

On Friday, Luna shares jumped 94.6% on volume greater than 11.3 million. More than 6.3 million changed hands Monday, compared to the stock's three-month average daily volume of 261,000, according to Yahoo! Finance. Luna has a 7.7 million-share float.

Investor posts on Internet message boards were split on whether Luna's surge higher was sustainable. Some argued for taking profits late in the afternoon, much like what happened Friday when the stock hit an intraday high of $3.29 before finishing at $2.18.

-- Written by Robert Holmes in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HNSN $4.22 -0.47%
LUNA $0.92 -2.13%
AAPL $110.48 0.90%
FB $92.84 0.40%
GOOG $640.86 0.27%


Chart of I:DJI
DOW 17,045.84 -4.91 -0.03%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,822.8970 +12.1090 0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs