What's better than momentum? Mo' momentum. Let's take a closer look at five of this past week's biggest scorchers.
|
Company |
Sept. 6 |
Weekly Gain |
|---|---|---|
|
Nokia (NOK -0.27%) |
$5.37 |
38% |
|
Alcatel-Lucent (NYSE: ALU) |
$3.15 |
22% |
|
Magnum Hunter Resources (NYSE: MHR) |
$5.59 |
20% |
|
Ruckus Wireless (RKUS) |
$15.30 |
13% |
|
Rigel Pharmaceuticals (RIGL -2.22%) |
$3.54 |
12% |
Source: Barron's.
Let's start with Nokia. The Finnish mobile handset pioneer soared after a deal to sell its devices and services division. The $7.2 billion deal helps rescue the company's ill-advised decision to back Windows Phone instead of Android as its mobile operating system of choice.
Alcatel-Lucent also moved higher on the Nokia deal. The thinking here is that Nokia will use some of its newfound wealth to focus on its remaining businesses. This makes Alcatel-Lucent a logical target if Nokia wants some more skin in networking infrastructure.
Magnum Hunter moved higher after an asset sale. It revealed the sale of oil and gas properties in North Dakota in a regulatory filing. Magnum Hunter's move will raise roughly $32.5 million.
Ruckus Wireless is another company that moved higher after Nokia's subsidiary sale. The Wi-Fi equipment vendor would be a compelling and attractively priced acquisition target. Ruckus began the week trading below its IPO price of $15 from 10 months ago.
Rigel Pharmaceuticals rose despite what seems like a retreat on the surface. The company announced that it will let 30 employees go -- or 18% of its workforce -- as it scales back its efforts in light of the failing of a drug to treat rheumatoid arthritis. The market isn't fond of backpedaling biotechs, but Rigel's move will help it focus its attention on three of its strongest candidates.
