Home Diagnostics, GT Solar: Early Volume Plays

NEW YORK (TheStreet) -- Several stocks trading near $5 were poised to move on above-average volume during Wednesday's session.

Home Diagnostics (HDIX) should rally sharply higher after Nipro Corp. agreed to buy the blood glucose monitoring systems maker for $11.50 a share in a cash deal worth $215 million. The 50-day average daily volume for Home Diagnostics is 29,000, according to the Nasdaq. After closing at $6.05 Tuesday, shares were surging more than 84% to $11.15 early Wednesday.

GT Solar International (SOLR) should also trade higher Wednesday after the company late Tuesday posted a fiscal third-quarter profit of 25 cents a share on revenue of $173.6 million, easily surpassing the Thomson Reuters average revenue and earnings estimates. Looking ahead to 2010, GT Solar offered better-than-expected earnings guidance and a strong revenue forecast. The 50-day average daily volume for GT Solar s 939,000. The stock closed at $6 Tuesday and was jumping 16.2% in early trading Wednesday.

American Technology (ATCO) shares were indicated higher after the sound acoustic products maker swung to a fiscal first-quarter profit of $1.8 million, or 6 cents a share, although net income included $597,000 in non-cash unrealized gain on the revaluation of derivatives. Revenue of $5.3 million was up 114% from the year-ago quarter and topped the $4.58-million average target of two analysts. The 50-day average daily volume for American Technology is 51,000.

Labopharm (DDSS) shares should gain ground Wednesday after the company said the Food and Drug Administration has approved its OLEPTRO extended release tablets, a once-daily formulation of the antidepressant trazodone, for the treatment of major depressive disorder (MDD) in adults. The 50-day average daily volume for Labopharm is 834,000. After it finished trading Tuesday at $2.61, the stock was jumping nearly 25% in early trading Wednesday.

Silicon Storage Technology (SSTI) should trade higher after Microchip Technology (MCHP) said it will acquire the flash memory maker for $2.85 a share in an all-cash deal. Shares of Silicon Storage closed Tuesday at $2.69. The 50-day average daily volume for Silicon Storage is 376,000.

-- Written by Robert Holmes in Boston.

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