K-Tel investors become erect at mention of a partnership with Playboy Enterprises but go limp when they discover it is a Disney deal instead.
09:16 ET K-Tel International (KTEL) 6 7/8: Former highflyer announces online music store partnership with Playboy Enterprises (PLA). KTEL shares indicated 18% higher in pre-market.
09:42 ET Early Movers: KTEL +3 (+45%), SANG +4 3/8, MSFT +1/2, CERN -3 3/4 (downgrade), DELL -1/8, PAIR -2 3/8 (downgrade), CIEN -2 (profit-taking, negative comments by Volpe Brown), YHOO +1, AMZN +1 --- Dow -6, Nasdaq -3.5, S&P +1, Russell 2000 -0.4, SOX -1.
10:02 ET K-Tel International (KTEL) 17 1/16 +10 3/16 (148%) --Update-- Issue continues to fly. Volume 3 mln shares; intra-morning range 8 1/8 to 17 1/4. (Press Release)
10:16 ET K-Tel International (KTEL) 13 7/16 +6 9/16 (+95%) --Update-- Much of stock's move from $10 to $17 7/8 can be attributed to Dow Jones headline reporting that K-Tel signed a deal with Disney rather than Playboy. However, headline has been corrected and stock has succumb to selling pressure. |
