Suturing up from last week’s losses, the broad market indexes are lifting into the green this morning. With them, healthcare stocks Icagen (NASDAQ: ICGN) and Continucare (NYSE: CNU) are pushing 52-week highs.
The markets are up on encouraging news that French banks will accept slower Greek debt repayments. Later in the week, the Greek parliament is expected to vote on additional austerity measures that could prompt the release of more bailout money.
On the home front, the U.S. government reported that consumer spending – which accounts for about 70% of economic activity – decreased in May. Higher gas prices seemed to limit spending in other areas. With this backdrop, several resource-based stocks are falling to 52-week lows, including Universal Forest Products (NASDAQ: UFPI) and China Natural Resources (NASDAQ: CHNR).
A full report follows below.
Stocks hitting 52-week lows
Universal Forest Products: The wood producer has shed more than 10% in morning trading. On Friday, the do-it-yourself lumber products company announced it will be cutting jobs and taking other cost-cutting measures because of weak sales.
China Natural Resources: The iron and zinc miner has fallen nearly 20% so far this morning as many precious metals and commodities sink lower.
Pain Theraputics (NASDAQ: PTIE): The biopharmaceutical drug manufacturer has lost more than 34% so far today. On Friday, PTIE shares fell more than 40% after the U.S. Food and Drug Administration rejected the company’s application for its leading drug candidate, Remoxy, an abuse-resistant form of oxycodone, developed with Pfizer (NYSE: PFE).
Stocks hitting 52-week highs
Icagen: The biopharmaceutical company has rocketed up over 105% so far this morning on news that drug manufacturer Pfizer is considering a “strategic acquisition” with the company, possibly in the form of a merger. Pfizer currently owns a 14.2% stake in Icagen.
Continucare: The outpatient care company is up over 30% in morning trading on news that primary healthcare provider, Metropolitan Health Networks (NYSE: MDF), is buying Continucare for more than $391.1 million in cash and stock. Shareholders will get about $6.25 in cash and 0.04 of Metropolitan common stock for each Continucare share currently owned.
Ezcorp (NASDAQ: EZPW): The credit services lender and pawnshop outlet has gained nearly 7% so far this morning. With continued economic weakness and decreased consumer spending, more people appear to be taking advantage of the company’s lending services to meet short-term cash needs.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
