Top Tech Stocks
Technology stocks were helping keep the S&P 500 and the Nasdaq Composite index in positive territory, with shares of tech companies in the S&P 500 leading all sectors with a more than 0.6% advance.
In company news, the Nasdaq stock market Friday morning halted trading of Root9B Holdings ( RTNB ) shares at $2.01 apiece in the wake of a rapid jump in its share price during the first half hour of trading and the struggling cybersecurity company’s last night announcing it was sold to an early-stage investment company formed by the co-founder of Cererus Capital Management.
Root9B shares raced as much as 58% higher this morning, topping out at $2.20 each in heavy volume before the Nasdaq stock market put the brakes on trading at 10:01 a.m. ET, asking for unspecified “additional information.”
The move follows debt-strapped Root9B’s last night saying it was being acquired for an undisclosed amount by Tracker Capital Management, a New York-based private-equity firm launched by Cerberus Capital co-founder and chief executive Stephen Feinberg. Tracker describes itself as an early-stage investor “focused on emerging technology and companies withthe potential to advance U.S. national security interests.”
Root9B earlier this month had set a Sept. 28 deadline for bids to acquire company assets with plans to use those auction proceeds to pay off its nearly $12.4 million in outstanding debts.
At the time, the company had been forced to issue issued secured convertible demand notes to raise about $600,000 to cover its short-term payroll obligations despite the offering immediately pushing Root9B into default on certain covenants underlying its existing debt.
In other sector news,
(+) SGH, (+16.0%) Non-GAAP fiscal Q4 net income of $0.79 per share improves on $0.62 per share adjusted profit during the year-ago period and beat the Capital IQ consensus by $0.13 per share. Revenue grows 5.4% over year-ago levels to $223 mln, also exceeding the $210.5 mln Street view.
(-) LKSD, (-8.8%) Citigroup today lowers stock rating to Sell from Neutral.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.