The markets are up this morning with the NASDAQ, S&P 500 and the Dow all in the green. This recovery comes after several days of heavy selloffs and could be an indicator of investors taking positions in hopes of a bump in prices. Nonetheless, the mood in the market remains mixed. There hasn’t been a major improvement in fundamentals since data from the Federal Reserve showed that the labour markets were not picking up as fast as the markets were expecting.
The markets are also still absorbing the news that the recent tech rally was not really fundamentals, but due to aggressive stock-buying by Japanese firm Softbank. As such, despite the jump in market value this morning, the underlying fundamentals remain weak. However, if the pre-market rally holds until the markets open, it could be an indicator that the worst has passed.
This could see the markets sustain gains in the day, and close higher. In this environment of cautious optimism, there are stocks that are outperforming the markets by a huge margin. Some of the stocks doing well pre-market and could do well all through the day are:
Superconductor Technologies Inc [NASDAQ: SCON]
Superconductor Technologies Inc is a top performer this morning and is up by over 30%. This comes as investors await the annual general meeting that is taking place today.
Part of the excitement stems from the fact that one of the issues on the agenda is a reverse stock split. Earlier, the company had announced that the stock split proposal had not got enough votes and that an extra 1.5% of the company’s outstanding shares were needed to actualize it.
The proposal is likely to pass this time as investors have been given enough time to exercise their voting rights after the AGM had been adjourned earlier on September 2nd. The stock split is aimed at enabling the company to maintain the $1 minimum bid price as required by the NASDAQ.
Trillium Therapeutics Inc [NASDAQ: TRIL]
This is another top performer this morning and is up by over 40%. This comes after the company announced that it had received a $25 million investment from Pfizer. The company has also announced that it has received a good safety profile for TTI-622, its antibody fusion protein that is viable as a cancer treatment.
Watford Holdings Ltd [NASDAQ: WTRE]
This is another pre-market top performer and is up by over 30%. This comes after the company announced that Arch Capital Group Ltd had made a $500 million offer for the company. The offer comes a year after the company went public and lost a third of its value. The offer represents a bid of $26 per share, much higher than the stock’s value of $17.8, at yesterday’s close.