Ambac Financial, DepoMed: Early Volume Plays - TheStreet

Ambac Financial, DepoMed: Early Volume Plays

Several stocks trading near $5, including Ambac Financial, were poised to move on above-average volume Tuesday.
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NEW YORK (

TheStreet

) --

Ambac Financial

(ABK)

was one of several stocks trading near $5 poised to move on above-average volume Tuesday after the bond insurer said it commuted $16.4 billion in debt securities.

Ambac Financial

said late Monday it has commuted all of its remaining $16.4 billion of exposure to collateralized debt obligations of asset-backed securities. Ambac agreed to pay $2.6 billion in cash and $2 billion in newly issued surplus notes to counterparties on collateralized debt obligations based on asset-backed securities.

Ambac also said that approximately $1.4 billion in other asset-backed securities for cash payments of $96.5 million. The bond insurer said it expects to commute other securities in the next 12 months for approximately $115 million of cash and $60 million of surplus notes from Ambac Assurance Corp.

Shares of Ambac Financial surged by 18 cents, or 17.5%, to $1.21 in the premarket session. The three-month average daily volume for Ambac is 55.42 million, according to Yahoo! Finance.

Elsewhere,

DepoMed

(DEPO)

jumped by 32 cents, or 10.6%, to $3.35 in the premarket session after the Food and Drug Administration accepted the company's marketing application for its experimental pain drug DM-1796 for the management of postherpetic neuralgia, which triggered a $10 million milestone payment from its licensee.

The 50-day average daily volume for DepoMed is 328,000, according to the

Nasdaq

.

A123 Systems

(AONE)

gained 41 cents, or 5.1%, to $8.42 in the premarket session after the company said late Monday signed a production agreement with

Navistar

(NAV) - Get Report

to supply lithium ion battery systems for electric vehicles.

The 50-day average daily volume for A123 Systems is 2.6 million.

-- Written by Robert Holmes in Boston

.

Check out all of Tuesday's high-volume, under-$5 stocks at the Dollar Store. View the Dollar Store portfolio on StockPickr.

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