NEW YORK ( TheStreet) -- The positive news in trading Thursday came mostly from tech, thanks in part to surging gains by Tessco Technologies ( TESS) and Red Hat ( RHT).
Shares of Tessco, the Hunt Valley, Md., builder of wireless technology, were rising about 26%, or about $3.20, to $15.54 on speculation of a buyout by its second-largest shareholder, Discovery Group. In a Sept. 22 letter to Tessco's board of directors, Discovery said that it would pay $15.50 a share for the company, a 42% premium on the stock's average closing price for the past month. Red Hat, the open source software provider out of Raleigh, saw its highest intraday price Thursday in more than a decade, thanks to better-than-expected second-quarter earnings it reported Wednesday. The Linux seller, rising 12% to $41.16, reported sales of $219.8 million, up from the $183.6 million reported in the same period last year. Analysts were expecting $211.49 million.
Shares of PC Mall ( MALL), a reseller of computers and electronics equipment, were rising more than 15% to $5.86 following its recent earnings report on one of its best quarters ever -- the company beat expectations with a profit of 11 cents a share; analysts expected 9 cents EPS. Portfolio manager Bob Auer of Auer Growth Fund told TheStreet that PC Mall is poised to double -- maybe even triple -- over the next year. The Day's Losers Thursday's tech losers were led by enterprise software provider Novell ( NOVL), the Microsoft ( MSFT) and Oracle ( ORCL) competitor. Its stock was trading down 51 cents to $6 on worries that Novell is having problems closing its deal to sell its Netware product. Reuters reported that prospective buyers, mostly private-equity firms, are unwilling to pay the product's asking price. Lastly, small, specialized chip maker RF Micro Devices ( RFMD), which competes with Skyworks Solutions ( SWKS) and Triquint ( TQNT), was down 5.33% to $5.68, most likely due to recent positive outlook from the bigger rivals. --Written by Maggie Overfelt in New Y ork. >To follow the writer on Twitter, go to http://twitter.com/maggieoverfelt. >To submit a news tip, send an email to: firstname.lastname@example.org.