(Scibilitymedia.com) This article discusses activity by Enzon Pharmaceuticals Inc (NASDAQ:ENZN) and BioFuel Energy Corp (NASDAQ:BIOF) during Wednesday June 11 2014.
Enzon Pharmaceuticals Inc (NASDAQ:ENZN) has demonstrated considerable volatility during the past few trading sessions. In the past week ENZN has rallied more than 20% on massive increase in average trading volume. Currently ENZN is down more than 9% following a technical reversal from it’s trading above the 50 and 200 moving day averages.
Enzon Pharmaceuticals Inc (NASDAQ:ENZN) presently has an RSI of 64 and downward sloping, suggesting to investors the possibility of a continued correction as investors secure their gains. MACD on ENZN has risen significantly indicating growth in interest from investors, evident despite today’s correction.
BioFuel Energy Corp. (NASDAQ:BIOF) has demonstrated a remarkable rally today of more than 45% following the company’s announcement of its acquisition of the equity interests of JBGL Builder Finance and certain subsidiaries of JBGL Capital from Greenlight and Brickman for $275M.
“JBGL is a series of real estate entities involved in the purchase and development of land for residential purposes, construction lending and home building operations, currently owned and controlled by Greenlight and Brickman. The cash portion of the purchase price will be funded from the proceeds of a $70M rights offering to be conducted by the company and approximately $150M in debt financing provided to the company by Greenlight. Jim Brickman, co-founder of JBGL, will become CEO and a director of the company upon closing of the transaction. The acquisition of JBGL by the company is expected to be consummated in October 2014.”
BioFuel Energy Corp. (NASDAQ:BIOF) is presently trading above $8.20 following its $2 rally overnight. RSI has shot up to a 74, indicating near overbought levels on heavier than usual volume for the company of midday 3.28 million shares changing hands versus the 10 day average of 300,000.