Lions Gate, AVI Biopharma: Early Volume Plays - TheStreet



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Lions Gate Entertainment


was one of several stocks trading near $5 poised to move on above-average volume Wednesday after the company posted full-year earnings results.

Lions Gate

said late Tuesday it had a fiscal 2010 loss of $19.5 million, or 17 cents a share, narrowing from the year-ago loss of $178.5 million, or $1.53 a share. Revenue increased to $1.58 billion from $1.47 billion in fiscal 2009.

Lions Gate said adjusted earnings before interest, taxes, depreciation and amortization totaled $128.5 million, compared to a negative $122.9 million in fiscal 2009.

The earnings announcement came after billionaire and activist investor Carl Icahn extended his hostile to buy Lions Gate for $7 per share to June 16. The tender offer was to expire Tuesday. Icahn also removed the condition requiring at least 50.1% of shares to be tendered. Lions Gate shareholders again rejected the bid, as the company called Icahn's tender offer "financially inadequate."

Lions Gate shares slipped by 13 cents, or 1.9%, to $6.70 in Tuesday's after-market session. The three-month average daily volume for Lions Gate is 984,000, according to Yahoo! Finance.


AVI Biopharma

( AVII) surged by 19 cents, or 13.7%, to $1.58 in the premarket session after the company said its experimental drug AVI-4658 showed positive results in a clinical study to treat a subgroup of patients with Duchenne muscle dystrophy, which is caused by a failure to produce a protein called dystrophin.

AVI Biopharma said top-line biopsy data showed generation of dystrophin-positive muscle fibers in more than 50% of normal in patients suffering from the muscle-wasting disease. The 50-day average daily volume for AVI Biopharma is 1.21 million, according to the




( DIVX) was also poised to rally sharply higher after

Sonic Solutions

( SNIC) said it would acquire the digital media company for $3.75 in cash and 0.514 a share of Sonic common stock for each share of DivX.

DivX shares

were jumping by $2.06, or 29.6%, to $9.01. The 50-day average daily volume for DivX is 270,000.


rose by 53 cents, or 7.1%, to $8.01 in the premarket session after the company raised its second-quarter and full-year guidance above the Thomson Reuters average analyst estimate. The 50-day average daily volume for is 251,000. said it now expects second-quarter earnings of 19 cents to 20 cents a share on revenue of $22.3 to $22.8 million, compared with the consensus target of a profit of 17 cents a share on revenue of $20.6 million. For the full year, expects revenue of $87 million to $90 million, which is well above the Thomson Reuters average estimate of $82.8 million.

Iridium Communications

(IRDM) - Get Report

shares were also higher, up $1.23, or 14.1%, to $9.94 in the premarket session. Iridium announced its plan for funding, building and deploying its next-generation satellite constellation, Iridium NEXT. The 50-day average daily volume for Iridium is 358,000.

-- Written by Robert Holmes in Boston


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