Sunday, December 9, 2012

3 Names That Forged New 52-Week Highs On Double Volume To Track On Monday

By Ian Hoffman

Below is a list of three stocks that hit new 52-week highs Thursday on double volume that may make for an interesting look next week for some savvy traders and investors. Each of the below listed companies' shares rose to fresh highs on Thursday for very different reasons and they all have some short-term, upward potential from their most recent closing prices.

1. Corrections Corp of America (CXW)

New 52-week high: $30.62

Volume: 13.65x its 30-day rolling average:

From the company:

CCA founded the private corrections management industry more than 25 years ago, establishing industry standards for future-focused, forward-thinking correctional solutions. A commitment to innovation, efficiency, cost effectiveness and achievement has made the company the private corrections management provider of choice for federal, state and local agencies since 1983.

The company's stock currently trades at $28.99 with 99.63M shares out, giving it a market cap of $2.89B. Institutional ownership stands at about 88%, with the short interest as of 03/15/12 being 2.23M shares. The stock jumped on Thursday as Corvex Management and Marcato Capital, both hedge funds, stated that they were discussing the possibility of converting the company from prison operator into real-estate-investment trust.

The average analyst price target is $29.50.

Key Data:

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2. Array BioPharma, Inc. (ARRY)

New 52-week high: $3.80

Volume: 1.97x its 30-day rolling average:

From the company:

Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer and inflammatory diseases. Our proprietary drug development pipeline includes clinical candidates that are designed to regulate therapeutically important target proteins and are aimed at significant unmet medical needs. In addition, leading pharmaceutical and biotechnology companies collaborate with Array to discover and develop drug candidates across a broad range of therapeutic areas.

The company's stock currently trades at $3.68 with 61.55M shares out, giving it a market cap of $226.52M. Institutional ownership stands at about 66%, with the short interest as of 03/15/12 being 3.35M shares. The stock broke out on Thursday reaching an intra-day high of $3.80 a day after the company released a report detailing encouraging Phase 2 trial results for Selumetinib, its orally bioavailable small molecule with potential antineoplastic activity. The trial was funded by the National Cancer Institute and run by the Gynecologic Oncology Group.

The average analyst price target is $4.10.

Key Data:

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3. Great Wolf Resorts, Inc. (WOLF)

New 52-week high: $6.65

Volume: 2.45x its 30-day rolling average:

From the company:

Great Wolf Lodge is North America's Premier Family Entertainment Brand and an icon in the hospitality industry. Led by the passionate leadership team at Great Wolf Resorts, the brand's success and accolades have made it the indoor waterpark hotel industry leader. Through innovation and dedication to customer service excellence the company has grown to twelve resorts.

The company's stock currently trades at $6.58 with 32.91M shares out, giving it a market cap of $216.54M. Institutional ownership stands at about 64%, with the short interest as of 03/15/12 being 76,148 shares. The stock broke sharply upwards on Thursday when it was made known that the company had received an unsolicited offer from KSL Capital Partners. KSL's offer of $205.7M, or $6.25 a share, trumps Apollo Global Management's (APO) offer of $165M, or roughly $5.00 a share. The speculation is that there may be a third bidder coming in or there will be a little bidding war between the two above names.

The average analyst price target is $5.00.

Key Data:

(click to enlarge)

Some data sourced by Nasdaq, Google, TD Ameritrade, and MarketWatch.

Disclosure: I am long ARRY.

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