NeoMagic Shares Jump More Than 9 Percent
Friday December 16, 4:50 pm ET
NeoMagic Shares Rise More Than 9 Percent Following Tumultuous Two-Week Roller Coaster Ride
NEW YORK (AP) -- NeoMagic Corp. shares jumped more than 9 percent on Friday, following a tumultuous two-week ride.
The stock has vacillated wildly in recent weeks, nearly doubling, trading at $7.58, up from $3.80, after the Santa Clara, Calif.-based maker of mobile handset processors reported third-quarter results. Earlier in trading that day it set a 52-week high of $9.75.
But the run up didn't hold -- shares dove 17 percent, to $6.41, on Dec. 14, after the company said it secured $9 million in financing through the private sale of 1.5 million shares, priced at $9 a piece.
Yet again, the stock took a dramatic turn upward on Friday, when shares rose 9.7 percent, up 67 cents to close at $7.58, and climbed as high as 10 percent in earlier trading.
There was no news from the company, but Needham & Co. analyst Quinn Bolton speculated that investors may have been gobbling up the stock out of enthusiasm for the mobile television market. On Thursday, NeoMagic announced a new mobile television solution for cell phones called MiMagic 6+.
"They're well positioned in the mobile television market, and there aren't a lot of pure plays there," Bolton said. "It's possible, too, that investors may see it as an acquisition target -- Broadcom bought its competitor, Alphamosaic, over a year ago. NeoMagic has technology value, and they may be what's getting people interested in the stock."
Bolton does not own any shares of NeoMagic, but Needham & Co. has an investment banking relationship with the company. |
