Trading Ideas: Stocks to Watch for Thursday (AMLN, SABA, ANGI, RHT, LGF, AE)
One of the most important skills that separates successful traders from losing traders is the ability to consistently find stocks on a day to day basis that are yielding opportunities. For short-term daytraders, this is absolutely critical. Heading into Thursday's trading session, Benzinga has compiled a list of six names that could be set to make big moves at the opening bell. The stocks that we will be keeping a close eye on tomorrow include Amylin Pharmaceuticals (NASDAQ: AMLN), Saba Software (NASDAQ: SABA), Angie's List (NASDAQ: ANGI), Red Hat (NYSE: RHT), Lions Gate Entertainment (NYSE: LGF), and Adams Resources & Energy (AMEX:AE).
Amylin Pharmaceuticals - On Wednesday, Bloomberg reported that Bristol Myers Squibb (NYSE: BMY) made a $3.5 billion, or $22 per share, offer to acquire Amylin last month which was not publicly disclosed at the time. Amylin's board of directors rejected the takeover proposal. In the wake of this report, AMLN shares surged the most since 2001, rising 54.45% to $23.77. In January, the FDA approved AMLN's Bydureon diabetes drug, and the company is now clearly in play as Bydureon would be an attractive asset for a number of large pharmaceutical firms. In addition to the possibility of a higher bid from BMY, AstraZeneca (NYSE: AZN) was also mentioned as a potential suitor on Wednesday.
Saba Software - After the close of trading on Wednesday, SABA announced that it is delaying its third quarter fiscal year 2012 earnings release and investor conference call to allow the Company additional time to complete an internal review of the accounting treatment of certain international transactions.The accounting probe is sure to spook investors and should create significant volatility in the name tomorrow. On Wednesday, SABA shares fell 5% during regular market hours and lost another 7% in the after hours session.
Angie's List - This recent IPO showed some unusual activity on Wednesday as the shares rose 5.64% to a new closing high of $18.91. The move came on heavy volume and since the stock broke out of its previous range on Monday, March 19, it has been moving steadily higher, creating an interesting chart pattern. The stock is showing a lot of momentum and could make a run at $20 in the coming days.
Red Hat - This enterprise software company released its fiscal Q4 earnings results on Wednesday after the closing bell. Red Hat reported EPS of $0.29 versus Street consensus estimates of $0.27. Revenues also exceeded analysts' consensus with RHT reporting sales of $297 million versus estimates of $291 million. In the after hours trading session, RHT surged 8.46% to $55.74 on the back of the impressive results.
Lions Gate Entertainment - Last week, I wrote an article highlighting my short thesis for the name. Lions Gate has soared in recent months on building anticipation for the blockbuster film, the "Hunger Games." In fact, shares have more than doubled over the last 6 months, with one of the primary catalysts being the release of "Hunger Games." The movie opened in theaters last Friday, and not surprisingly, has been a smashing success. Due to the massive run-up in the name ahead of this catalyst, however, it seemed very likely that a lot of profit taking would be taking place in the name this week. That is exactly what has been happening over the last couple of days and LGF shares have lost more than 10% since Monday's close. Look for this trend to continue and even accelerate in the coming days.
Adams Resources & Energy - This small-cap stock has been on fire in recent months and the momentum in the name continues to build. Over the last 3 months, AE shares have risen more than 171% and tacked on another 5.79% on Wednesday. Volume was more than 3 times the daily average. With the chart starting to go parabolic, it is possible that AE is forming a blow-off top and is set to come back down to Earth. Conversely, as more and more traders become aware of the stock, it could continue to run higher in the near-term. In any event, the chart and volume activity in AE is suggesting that more big moves are likely on Thursday and Friday.
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