Marvell, SeaChange See Trading Jump

Dow, other indices up slightly at midday

   

Here’s what’s hot in the market today: Chip maker Marvell surprised with its forecast while retailers Gordmans and Rue21 experienced wildly different fortunes, with the first way down and the latter way up. Meanwhile acquisition talks led to a spike up for digital video device manufacturer SeaChange, and Indian Priceline competitor MakeMyTrip saw a nasty dip.

Marvell Technology Group (NASDAQ: MRVL) rose more than 10% to a little over $16 on trading of nearly 38 million shares, more than triple its average trading volume. Chip maker MRVL Thursday reported a downturn in first quarter earnings but forecast a 20% rise in second quarter revenues. JPMorgan analyst projected “strong top-line growth for the rest of this year and beyond.”

MakeMyTrip (NASDAQ: MMYT), the Indian online vacation planning service and competitor of Expedia (NASDAQ: EXPE) and Priceline (NASDAQ: PCLN), dropped more than 5% on 1.5 million shares, about 12-times normal volume. The drop came after the company announced it would sell 5.2 million shares at $24 a share in a secondary offering. In Monday, MMYT said it would offer 6 million shares. MMYT was trading near $23 by midday.

Gordmans Stores (NASDAQ: GMAN) was down a whopping 22% to near $17 in midday trading. The dip came after Wells Fargo and other banks downgraded GMAN’s valuation from $17-19 per share to $16-$17. More than 1 million shares of the drug and convenience store chain have traded, 13-times the normal daily volume.

Rue21 (NASDAQ: RUE), the Pennsylvania-based clothier, was up almost 15% to nearly $33 by midday with more than 1.2 million shares changing hands, up from average volume of 285,000 shares. Rue21 reported profits were up 65% year-on-year in its strong first quarter earnings.

SeaChange (NASDAQ: SEAC) was up about 12% to a little over $11 on more than three times normal trading volume. The Wall Street Journal reported that Arris Group (NASDAQ: ARRS) is looking to acquire the developer of digital video systems and services. SeaChange equipment is used by Comcast (NASDAQ: CMCSA) and Verizon (NYSE: VZ).

As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at @ajohnagnello and become a fan of InvestorPlace on Facebook.


Article printed from InvestorPlace Media, http://investorplace.com/2011/05/marvell-seachange-lead-stock-trading-mrvl-mmyt-gman-rue-seac/.

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