NEW YORK ( TheStreet) -- Several stocks trading near $5 were poised to move on above-average volume during Monday's session.

BioForm Medical ( BFRM) surged by $2.07, or 60.9%, to $5.47 in the premarket session after the company said it has agreed to be acquired by privately held Merz Pharma of Frankfurt for $5.45 a share in cash, of a total of $253 million. Premarket share volume was nearly 2 million, compared to the 50-day average daily volume of 75,000 shares.

Kandi Technologies ( KNDI) jumped by 66 cents, or 15%, to $5.06 in the premarket session after the company said it has formed a strategic alliance with a joint venture of China National Offshore Oil Corporation ( CEO) and China Potevio, as well as Tianneng Power International, aimed at speeding up the commercialization and achieving mass adoption of Pure Electronic Vehicles in China. The 50-day average daily volume for Kandi is 286,000.

Digital Ally ( DGLY) rose by 36 cents, or 17.6%, to $2.41 in the premarket session after the company said fourth-quarter revenue jumped 37% to $9.2 million, exceeding the lone analyst target of $9 million. Digital Ally added that it returned to net profitability in the third quarter and expects to report a further improvement in fourth-quarter earnings. The 50-day average daily volume for Digital Ally is 85,000.

Magal Security ( MAGS) gained 42 cents, or 11.4%, to $4.10 in the premarket session after the company late Thursday said in a regulatory filing that through the first six months of 2009, revenue fell 12.7% from a year ago to $21.9 million while its net loss fell to $2.1 million from $5.1 million a year earlier. The 50-day average daily volume for is 9,400.

( Earlier at 7:35 a.m. EST)

Flotek ( FTK) shares were set to trade lower after the company late Thursday offered a disappointing year-end update on its operations. Flotek said it does "not expect meaningful growth in this business until mid-2010. Weather and holidays also impact this business line." The three-month average daily volume for Flotek is 571,000, according to Yahoo! Finance. The stock closed Thursday at $1.34.

Compugen ( CGEN) shares jumped 7.4% to $5.21 in the premarket session in the absence of any company-specific news. Last week, Compugen rallied after it completed a $20 million offering of 4.1 ordinary million shares at weighted average price of $4.91 per share. The 50-day average daily volume for Compugen is 1.41 million, according to the Nasdaq.

Morton's Restaurant Group ( MRT) and Ruth's Hospitality ( RUTH) could trade higher Monday after Piper Jaffray analysts upgraded the stocks to underweight from neutral, citing improved corporate travel and stabilizing same-store sales. Morton's closed Thursday at $2.91, and Ruth's ended the week at $2.09. The three-month daily average volume for Morton's is 88,500, while the 50-day average daily volume for Ruth's is 291,000 shares.

WebMediaBrands ( WEBM) said it has acquired social-media tradeshow company 3rd Power from Charles Edward Hudson as well as several new tradeshows to be launched in 2010. Terms of the acquisition were not disclosed. The 50-day average daily volume for is 137,000 shares. The stock dropped 11.1% on Thursday to close at 88 cents.

-- Written by Robert Holmes in Boston.

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