China Armco, Wet Seal: Early Volume Plays

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

China Armco Metals (CNAM) should traded higher on increased volume after the metal distributor said one of its subsidiaries has entered into a scrap supply contract with a major China steel producer valued at up to $100 million this year. The three-month average daily volume for China Armco is 109,000. The stock closed Wednesday at $5.30.

China XD Plastics (CXDC) was poised to gain ground Thursday after the automotive plastics manufacturer will expand into the eastern China market with a new distributor agreement. The 50-day average daily volume for China XD is 69,000. Shares finished trading Wednesday at $6.15.

Wet Seal (WTSLA) may trade higher on increased volume after the retailer said same-store sales increased 4.7% in February, compared to the Thomson Reuters estimate for a decline of 2.9%. The 50-day average daily volume for Wet Seal is 1.07 million. Shares closed Wednesday at $4.11.

ENGlobal (ENG) should lose ground after the energy consulting provider reported a fourth-quarter loss of 3 cents a share, surprising analysts who had expected a profit of 2 cents a share. Revenue fell nearly 40% to $82.8 million, also below consensus. The three-month average daily volume for ENGlobal is 137,000. The stock finished Wednesday's session at $3.18.

-- Written by Robert Holmes in Boston.

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