Transphorm [TGAN] - Last Close: $3.79
This micro-cap semiconductor firm has agreed to be acquired by Renesas Electronics in an all-cash deal with an enterprise value of about $339 million.
Transphorm shareholders will get $5.10 for each share of common stock; representing a 34.5% premium over Wednesday's closing bid.
The transaction is expected to close in the second half of 2024, subject to stockholder approval, regulatory clearances, and other conditions.
Shares of TGAN are up 27.4% on the news, with roughly 800K shares traded so far in today’s premarket.
My Take:TGAN landed a solid deal, but the modest volume shows the market is not exactly running to get in on the action.
Moolec Sciences [MLEC] - Last Close: $2.00
This tiny biotech is skyrocketing after a suffering a steep pullback over the past few days.
MLEC is down 19.6% over the past month and 47.2% over the past 6 months, but today’s jump could be a signal that the sell-off was overdone.
Shares fell 13.4% on Wednesday, despite not major announcements from the company since Nov. 17th. However, shares are surging on huge volume today.
MLEC is up 35.5% and it’s one of this morning’s most active stocks with 7 million shares traded.
My Take: MLEC has a modest short rate, so there’s no obvious catalyst to explain this move. However, the huge trading volume could open the door to potential day trades.
Canaan [CAN] - Last Close: $2.14
This Bitcoin mining equipment producer is surging following the SEC’s approval of 11 applications for Bitcoin ETFs in Wednesday’s premarket.
Many of the most notable crypto stocks, and crypto assets themselves, have had a surprisingly weak reaction to the news, but CAN is getting a boost.
Shares are up 14.4% on over 3.1 million shares traded.
My Take: CAN had a 9.58% short rate as of Dec. 15th, so this could be a targeted effort designed to compel a squeeze by harnessing the momentum from the BTC ETF ruling.
Atreca [BCEL] - Last Close: $0.1071
This VERY small float stock is racking up huge gains in today’s premarket after a private investor unveiled a major stake in the company.
Yesterday, a Form SC13G filing revealed Baker Bros. Advisors LP and 667 LP have taken a 19.99% combined passive stake in the company as of Dec. 31st.
Baker Bros. position includes upwards of 7 million shares and accounts for an 18.29% ownership stake.
News of the Smart Money’s interest boosted this tiny stock to an 85.5% gain on 30 million shares traded in today’s premarket.
My Take: BCEL has a float of less than $5 million, and its short rate was 8.1% as of a few weeks ago. However, this rally is already losing momentum, so you may have missed the boat.
