Monday’s slew of M&A activity pushed many stocks higher yesterday, including new highs for cell phone stocks Orsus Xelent Technology (NYSE: ORS) and Zagg Inc (NASDAQ: ZAGG). This afternoon, trader optimism is continuing, thanks to better-than-anticipated U.S. economic reports.
Although U.S. retail sales fell for the first time in 11 months, the 0.2% drop was less than the 0.4% expected, offering some hope the economy is slowing improving.
Additionally, the Producer Price Index (PPI) increased only 0.2% in May, compared to a 0.8% rise in April. May’s rise was the smallest in several months, bringing consumers welcome relief from rising food and gas prices.
With all three major benchmark indexes in the green this morning, a number of cell phone companies are hitting 52-week highs, including Orsus Xelent Technology (NYSE: ORS) and Zagg Inc (NASDAQ: ZAGG). However, on news China raised its bank reserve requirements for the 6th time this year, a number of Chinese food stocks – caught up in potential accounting scandals – are hitting are 52-week lows. These companies include China-Biotics (NASDAQ: CHBT), China Marine Food (NYSE: CMFO) and China Sky One Medical (NASDAQ: CSKI).
A full report follows below.
Stocks hitting new 52-week highs
Orsus Xelent Technology (NYSE: ORS): Following last week’s steady rise, the Chinese cell phone manufacturer and distributor is pushing ahead another 12% so far this morning. Since June 9th, the stock has rocketed up more than 230% on heavier than normal volume. It appears the stock may be rebounding from an SEC bulletin that advised traders to not invest in Chinese companies, like Orsus, which entered the U.S. market through reverse mergers.
Solarwinds (NYSE: SWI): The IT infrastructure management company is up around 7.5% so far today. The stock is showing technical strength and appears to be bullishly breaking out of a consolidation pattern.
Zagg Inc (NASDAQ: ZAGG): The maker of cell phone accessories, best known for its invsiSHIELD screen protector, is up about 5.5% so far today. On June 8th, the company announced it received a U.S. patent for its protective screen coverings. The stock has been moving higher, on heavy volume, ever since.
Stocks hitting new 52-week lows
China-Biotics (NASDAQ: CHBT): The developer of Chinese probiotic products has shed nearly -8% so far in morning trading. The biotech company is one of several Chinese reserve-merger stocks that has tumbled in light of questionable accounting practices.
China Sky One Medical (NASDAQ:CSKI): The Chinese manufacturer and seller of nutritional supplements is down about -1% so far today. The company is another reserve-merger stock subject to questions of fraudulent bookkeeping records.
China Marine Food (NYSE: CMFO): The Chinese seller of processed seafood based snacks has lost around -1.5% in morning trading. The stock is in a downtrend and seems to be succumbing to technical vulnerability.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
