NEW YORK (TheStreet) -- Encorium Group (ENCO ) was one of several stocks trading near $5 were moving on above-average volume Thursday, as shares bounced following a negative reaction to its fourth-quarter earnings results.
Late Monday, Encorium said fourth-quarter net revenue fell 21.4% from a year ago to $4.4 million. The company said its loss from continuing operations narrowed to 18 cents a share from a year-ago loss of $4.92 a share.
Encorium also said it burned through $8 million in net cash used in operations during 2009, leaving it with enough cash to meet requirements into March 2011. As such, the company said it may be required to obtain additional capital or significantly reduce its operating costs, which may include the cessation of operations in some countries.
Making matters worse, Encorium said it anticipates that a delisting action will be brought against the company for failure to comply with the Nasdaq's $2.5 million minimum stockholders' equity requirement.Through Wednesday, Encorium shares sank more than 30% this week, hitting a low of $3.79. Lately, though, the stock was bouncing back, climbing nearly 18% to $4.56. Volume topped 636,000 shares, compared to the 50-day average daily volume of 715,000, according to the Nasdaq. Elsewhere, Reed's (REED) was also among the big volume winners of the day, rising by 39 cents, or 19%, to $2.45 after the company said it has expanded its product placement into Harris Teeter Food Markets Harris Teeter, which operates 196 stores throughout the South, will immediately begin carrying six SKUs of Reed's branded products. Reed's volume topped 1.1 million shares, compared to the 50-day average daily volume of 165,000. On Tuesday, Reed's shares jumped after the beverage maker said it anticipates a "minimum of 20% increase in revenues for fiscal 2010." This came as Reed's said fourth-quarter revenue rose 21% over the prior year. On the downside, The McClatchy Company (MNI) fell by 81 cents, or 11.9%, to $6.02 after the company posted a first-quarter adjusted profit of 6 cents a share, which was below the Thomson Reuters average estimate of 10 cents a share. Revenue fell 8.2% from a year ago to $335.6 million, although that was above consensus. McClatchy's volume topped 2.37 million shares, compared to the three-month average daily volume of 1.41 million, according to Yahoo! Finance. Gushan Environmental Energy Limited (GU) slumped by 9 cents, or 8%, to $1.03 after the biodiesel company said it will temporarily suspend operations at its Shanghai plant from April 15 until Oct. 31 due to the heightened control measures by the Shanghai municipal government leading up to the Expo 2010, which runs until Oct. 31. Volume topped 1.21 million shares, compared to the three-month average daily volume of 502,000. -- Written by Robert Holmes in Boston. Check out all of Thursday's high-volume, under-$5 stocks at the Dollar Store. View the Dollar Store portfolio on StockPickr. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
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