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

Sirius XM, Ambac: Week's Big Volume Movers

TheStreet's Gavin Magor added that even at $3.39 a share, investors should have understood that Ambac is still a penny stock. Magor noted that the company still has a junk rating, adding that the 2009 results that people were trading on reflect the period before the OCI took action.

For now, it may appear that Ambac may dodge a delisting by the NYSE, but that may be little consolation for anyone who bought Ambac for more than $3 a share only to see it finish out the week at $1.76.

Encorium Group's (ENCO) surge over the last three trading sessions is more puzzling than encouraging at first blush. The stock jumped more than 60% in the absence of any company-specific news, ending the week at $5.46. The sharp move higher began Wednesday, with Encorium climbing by roughly a dollar each day through the rest of the week.

The surge -- which many traders and media outlets attributed to momentum trading -- is particularly surprising as it came a week after Encorium delayed the filing of its annual report as the company's independent registered accounting firm has not completed its audit of the company's financials.

Looking at a recent history of the company, it's hard to understand why Encorium shares would rally 60% on no news. Shares had been stuck below $1 since September 2008, often trading for less than a quarter, until the company implemented a reverse stock split in February in order to avoid a delisting from the Nasdaq.

Before the 1-for-8 reverse stock split took effect on Feb. 17, Encorium had warned investors that the stock's listing could very well be moved to the so-called pink sheets and would be subject to rules relating to penny stocks under the Securities and Exchange Act of 1934. Those requirements would make it more difficult to buy or sell our common stock in the open market.

Encorium is also burning through cash at an alarming rate. In its last quarterly report for the three months ended Sept. 30, 2009, Encorium said it began the year with $5.7 million in cash and cash equivalents, ending the latest period with only $318,243. In the third quarter alone, Encorium burned through roughly half a million in cash, according to regulatory filings.
3 of 4

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
ENCO $0.00 0.00%
SIRI $3.46 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs