This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Sirius XM, Ambac: Week's Big Volume Movers

Stocks in this article: SIRI ABK ENCO

NEW YORK ( TheStreet) -- Stocks trading for less than $5 can experience large percentage moves on heavy volume for any number of reasons. TheStreet's Dollar Store examines some of this week's biggest under-$5 stock movers and the catalysts for the trading action.


Sirius XM (SIRI - Get Report) shares rose nearly 9% during a busy week for the satellite radio company. On Tuesday, Janco Partners analyst Martin Pyykkonen upgraded Sirius XM to buy from accumulate and raised his stock price target to $1.30 from 80 cents, citing the company's operating leverage on a market rebound.

Sirius XM shares didn't react much to the upgrade, though, and traded in a very narrow range. The stock opened Tuesday at 97 cents, went as high as 99 cents and closed at 96 cents. Volume, however, was a different story. More than 205 million shares of Sirius XM changed hands during the session, making it one of the most active stocks on the exchanges.

The following day, Sirius XM said it added 171,441 net subscribers in the first quarter of 2010, ending the three-month period with 18.94 million subscribers. Sirius XM said deactivations fell by 11% compared with the first quarter of 2009, while gross additions rose 29%.

> > Bull or Bear? Vote in Our Poll

Once again, the stock traded on massive volume, this time topping 216 million shares. And for the first time in more than a month, Sirius XM shares closed above the $1 mark.

April, as it turns out, has been an incredibly busy month for Sirius XM traders. The 50-day average daily share volume for Sirius XM currently is 166.66 million as of Friday. Only three times this month has daily share volume on Sirius XM fallen below that average. More than 251 million shares would change hands on Thursday, when the stock closed at $1.11.

Things may come to a head on April 29, when Sirius XM will meet with a Nasdaq listing committee for a hearing on the stock's continued listing on the exchange. Sirius XM has been unable to satisfy the Nasdaq's minimum bid price requirement since the company was initially issued a warning in September 2009.

Janco Partners' Pyykkonen isn't concerned about a Sirius XM delisting, though.

"Sirius XM's stock is clearly right on the borderline in attempting to sustain a $1 or higher price for Nasdaq's minimum requirements," Pyykkonen wrote in his research note Tuesday. "The most likely scenario is for Nasdaq to grant a six month extension on a delisting decision."

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs