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.
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