LML Payment Systems
shares surged Monday on above-average volume as traders speculated that the payment processing services provider could benefit from an increase in holiday sales.
LML Payment Systems rose as
MasterCard Advisors' SpendingPulse
showed that U.S. holiday sales rose 3.6% between Nov. 1 and Dec. 24, compared with a year-ago decline of 2.3%.
Beanstream Internet Commerce, a subsidiary of LML Payment Systems, counts
among its key customers, leading some traders to speculate that LML's fourth-quarter results will benefit from a ramp up in online sales.
Traders on Internet message boards noted that LML Payment's stock has been on the
unusual volume list since last week, which could be an early indication that a large fund is accumulating shares. Other traders noted the relatively small number of shares short, an indication the recent rally was not due to a short squeeze.
Shares of LML Payment Systems were jumping by 39 cents, or 38.6%, to $1.40. The stock has climbed nearly 80% over the last five trading sessions. More than 531,000 shares changed hands by 3:45 p.m. EST Monday, compared to the stock's 50-day average daily volume of 46,000.
LML Payment Systems has a 20.6 million-share float with 115,000 shares short as of Nov. 30, according to Yahoo! Finance. Insiders hold 25.9% of the company's shares, with another 15.1% owned by institutions.
-- Written by Robert Holmes in Boston
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