PMI Group (NYSE: PMI) is having a huge day. Shares are up more than 50% right after the open after the company announced it is selling its Australian operations. The sale price is $920 million on the surface, although 20% is via a promossory note that appears subject to performance measures. As this company is losing money and as it needs to shore up liquidity, you can imagine traders are giving it a shine this morning.
At 9:40 AM EST we have seen over 1.6 million shares trade hands and the gains are now about 62% to $4.53. Before thinking this is the best company out there, you might recall its 52-week trading range is $1.20 to $36.25. Its average daily volume is now about 2.8 million shares and its market cap is now down to $370 million after the credit market and housing market implosion killed this stock.
Jon C. Ogg
August 14, 2008
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