Sequenom, FalconStor: Early Volume Plays

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

Ruth's Hospitality Group ( RUTH) sank by 12 cents, or 4%, to $2.88 after the restaurant company set the terms for its previously announced common stock rights offering. On Jan. 20, Ruth's Hospitality will distribute one transferable subscription right for each share of common stock, which will entitle the holder to purchase 0.579232 shares of common stock at an exercise price of $2.50 per share. The 50-day average daily volume for Ruth's Hospitality is 381,000, according to the Nasdaq.

Sequenom ( SQNM) jumped by 25 cents, or 6%, to $4.40 after the company agreed to pay $14 million to settle a shareholder class action lawsuit, which will be funded by insurance proceeds. Additionally, Sequenom has agreed to issue a number of shares of common stock to the plaintiffs' class. These shares shall constitute 9.95% of the total shares then outstanding. The 50-day average daily volume for Sequenom is 4.24 million.

FalconStor Software ( FALC) tumbled by 64 cents, or 14.3%, to $3.85 after the company said late Thursday that it expects a fourth-quarter loss of 2 cents to 3 cents a share due to a shortfall in projected revenue caused by lower software licenses. Analysts are projecting a profit of 7 cents a share, according to Thomson Reuters. The company also advised investors not to continue to rely on any other aspects of its previously issued financial guidance for 2009. The 50-day average daily volume for FalconStor is 143,000.

( Earlier at 7:37 a.m. EST.)

The South Financial Group ( TSFG) was set to rally Friday after the company's Carolina First Bank subsidiary said it has been approved as a preferred lender under the U.S. Small Business Administration Preferred Lender Program. The 50-day average daily volume for South Financial is 3.64 million, according to the Nasdaq. South Financial shares closed Thursday at 68 cents.

Majesco Entertainment ( COOL) shares should open lower Friday after the video-game company reported a fourth-quarter adjusted loss of 6 cents a share, compared with the consensus of two analyst estimates for a profit of 11 cents a share. While revenue of $23.9 million in the quarter was better than analysts had expected, Majesco's full-year earnings and revenue view disappointed. The 50-day average daily volume for Majesco is 251,000. The stock closed Thursday at $1.19.

Athersys ( ATHX) should trade lower Friday after the company filed late Thursday for a common stock and warrants offering of 20 million shares. The 50-day average daily volume for Athersys is 2.84 million. Shares finished Thursday's session at $3.47.

Hersha Hospitality Trust ( HT) should open Friday's session on the downside after it said it priced an offering of 45 million shares at $3 a share. The stock closed Thursday at $3.32. The three-month average daily volume for Hersha Hospitality is 371,000, according to Yahoo! Finance.

-- Written by Robert Holmes in Boston.

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