Ambac Financial, QAD: Early Volume Plays

Several stocks trading near $5, including QAD and Ambac, were poised to move on above-average volume Tuesday.
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QAD Inc.


was among several stocks trading near $5 poised to move on above-average volume Tuesday after the enterprise software company disappointed with its view on the fiscal first quarter.


offered preliminary financial results for the first quarter of 2011, saying it expects a loss of 4 cents to 5 cents on revenue of $50 million to $51 million, which is below the Thomson Reuters consensus estimate for a profit of 6 cents a share on revenue of $52.5 million. Previously, QAD had forecasted a quarterly profit of 3 cents a share on revenue of $54 million.

"Although we did not meet our revenue expectations during our first quarter, we are seeing increased activity at our manufacturing customers, although capacity utilization is still below pre-recession levels," CEO Karl Lopker said in a statement. "This is leading to a corresponding increase in our near term pipeline. As a result, we believe that our existing business model and plans are appropriate for the current environment."

QAD shares were falling by 47 cents, or 8.2%, to $5.24 in the premarket session. The 50-day average daily volume for QAD is 43,000, according to the



AP Pharma


also traded lower, sliding by 8 cents, or 8.7%, to 82 cents in Monday's after-hours session after the company reported a first-quarter loss of a penny a share. That compares to a year-ago loss of 10 cents a share, although the company said that is due to royalty milestone payments totaling $2.5 million. The 50-day average daily volume for AP Pharma is 1.35 million.

Ambac Financial


dropped by 16 cents, or 11%, to $1.30 in the premarket session after the bond insurer posted a first-quarter net loss of $690 million, or $2.39 a share, widening from a year-ago loss of $392 million, or $1.36 a share.

Ambac said its first-quarter results reflected a large positive change in fair value of credit derivatives offset by loss and loss adjustment expenses primarily related to residential mortgage-backed securities (RMBS) exposure, other than temporary impairment write downs of RMBS securities in the investment portfolios, and a $600 million increase in the deferred tax asset valuation allowance

The three-month average daily volume for Ambac is 51.8 million, according to Yahoo! Finance.

Resource Capital


slumped by 57 cents, or 8.5%, to $6.15 in the premarket session after the company said late Monday it plans to offer about $80 million in a public offering. The three-month average daily volume for Resource Capital is 708,000.

-- Written by Robert Holmes in Boston


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