As we move into the second day of what will undoubtedly turn out to be a busy week across the stock markets, what stocks offer up high potential intraday returns? Here’s a quick look at two of Tuesday’s hottest prospects.
Forest Laboratories Inc. (FRX)
First up on today’s list is bio-pharmaceutical Forest Laboratories. Forest Laboratories develops, manufactures, and sells branded forms of ethical drug products in the United States and Europe. A couple of major events should drive volatility today. The first is its premarket announcement that it had acquired drug development company Furiex Pharmaceuticals, Inc. (FURX) for $95 per share in cash, or $1.1M. The company plans to offset the cost of the deal through an agreement to sell Furiex’s ongoing royalty streams on two of its current lead drugs to Royalty Pharma for $315M after tax. The announcement came ahead of today’s second major driver – the company’s earnings report. Analysts forecast a boost on previous results, and while the recent acquisition suggests the company’s cash position may be diminished, it hints at insider confidence.
The company’s stock closed down yesterday, so look for an initial upside target at of Monday highs at 91.03. Beyond that, look for a secondary upside swing to Thursday highs at 92.15.
Nokia Corporation (NOK)
Second up on today’s hot stocks list is mobile device manufacturer Nokia. The company has struggled recently, with reports of a falling market share and a lack of credible technology dogging the stock’s value. Nokia announced today however, that it had appointed Rajeev Suri to take over as CEO on May 1. In combination with an dividend overhaul, the announcement should boost the stock as the day matures. The company is up 8.25% pre market, and expect further gains as the day matures.
Look for an initial upside target of Friday highs at 7.42, and beyond that, weekly highs at 7.53.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com