NEW YORK (TheStreet) -- Deal activity continues to drive small-cap stocks, with RehabCare (RHB) shooting up after Kindred Healthcare (KND) said it will acquire the company for $900 million in cash and stock. The deal will create the largest rehabilitation services provider.
Under the deal, shareholders of RehabCare will receive $26 in cash and 0.471 shares of Kindred. The stock was soaring 44% to $36, well above the offer price, indicating traders' expectations for a higher bid. Shares of Kindred also surged 24.5% to $24.29.
Battery-maker Exide Technologies (XIDE) saw its shares jump 14% to $11.89 after it delivered better-than-expected results on stronger sales in Europe. The company reported adjusted profits of 33 cents per share beating estimates of 27 cents.
Shares of Boyd Gaming (BYD) were gaining 11% to $12.29 after analysts at Bank of America/Merill Lynch upgraded the stock to a buy from a neutral along with MGM resorts (MGM) on expectations of a continuing recovery in Las Vegas.Communications software maker Synchronoss Technologies (SNCR) reported strong fourth quarter profits after the bell Monday and forecast better-than-expected results for the first quarter. The firm expects Verizon's (VZ) contribution to its 2011 revenue to double to 10 percent, compared with 2010. Shares were climbing 11% to $34.64. Capstone Turbine (CPST) shares were rising 7% to $1.48 on an upgrade from Ardour Capital to buy from accumulate. Shares of LED equipment company Veeco (VECO) were stronger by 5.5% at $47.64 despite a weaker-than-expected guidance for the first quarter. But the company's full-year guidance was ahead of estimates. KB Home (KBH), PMI Group (PMI), Talbots (TLB) were other notable gainers. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV