NASDAQ (New York) Market Overview Year: 2012 Week: 14

Week 14 was exceptional because it had only 4 trading days due to Easter holidays. This week started with all three indexes growing modestly and it seemed that the growth might continue throughout the week. However, already on Tuesday indexes changed their direction and at the end of the day Dow Jones Industrial Average (DJI) was in negative growth territory, while S&P 500 (INX) and NASDAQ Composite (IXIC) were also well below their growth level of Monday.

NASDAQ Composite index (IXIC), Dow Jones Industrial Average index (DJI) and S&P 500 index (INX) change during week 13. Source: google.com/finance

Wednesday started with an enormous drop in all three major indexes, NASDAQ (IXIC) dropping the most from 0.66% growth at the end of Tuesday to -0.36% growth at the beginning of Wednesday a staggering drop of almost 1%. Indexes didnt rebound neither on Wednesday nor on Thursday and at the end of the trading week it was clear - this was the largest weekly decline in 2012 for all three major indexes. Dow Jones Industrial Average (DJI) dropped by 1.1%, S&P 500 (INX) by 0.71% and NASDAQ Composite (IXIC) declined least by 0.41%. As it was mentioned last week, indexes growth was very dependent on economic data. The stunning drop of week 14 can be explained by very weak Spanish governments debt auction which indicated that Euro crisis is still there and by Feds announcement that it might not renew its quantitative easing programs.Weekly volume in NASDAQ during week 14 was 231,216,796,235$, which is naturally lower than usual due to 4 days trading week. However, daily average is not exceptional. The biggest winner of the week is Cleantech Solutions (CLNT) with 203.72% weekly jump in its stock price. Biostar Pharmaceuticals (BSPM) saw its stock price growing by exactly 200.00% while NF Energy Savings (NFEC) third biggest winner of the week showed impressive growth of 148.94% as well. This week as also marked by huge losses for some companies. Among biggest losers are AeternaZentaris (AEZS), Pinnacle Airlines (PNCL) and Dearborn Bancorp (DEAR) which showed decrease of 63.08%, 60.00% and 53.33% respectively.

The largest 203.72% price increase was performed by Cleantech Solutions International, Inc. (CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries. This was also one of the most obscure and vague events in the market. The stock price rose sharply on Wednesday, continuing the trend on Thursday morning as the price surged to a new high for the year. However, the company claims that it is not in possession of any material information that has not been publicly disclosed that could account for the unusual trading in its common stock. Pre-market trading was quite active for the stock, making it the only probable reason for this sharp increase. The total trading volume during the week exceeded six million, which is way above the average. We cant make any certain future predictions at this point.

Cleantech Solutions International, Inc. (CLNT) price index change during week 14; Source:http://finance.yahoo.com/

The second biggest rise, 200.00%, belongs to Biostar Pharmaceuticals (BSPM), a developer, manufacturer and marketer of pharmaceutical products in China. After hitting its 6 month peak in the beginning of March, the companys stock prices have been declining steadily until the end of 13th week, when the board unanimously approved a reverse split of its stock at a ratio of 1-for3 which became effective on April 3, 2012. It means that the number of outstanding common shares in the market was reduced 3 times. Consequently, the price became approximately 3 times bigger, as it was adjusted in a proper way. Disregarding the reverse split, the companys stock price has been declining steadily for a month now and no potential fundamental factors can be seen so as to reverse the trend; therefore, it is quite reasonable to believe that the downturn might as well prevail for the upcoming weeks.

Biostar Pharmaceuticals (BSPM) price index change during week 14; Source: http://finance.yahoo.com/

The biggest loser of the week is a late-stage cancer and similar drugs development company AEterna Zentaris Inc. (AEZS). Companys share price decreased by 63.08% to 0.799 USD. The price index of AEterna Zentaris Inc. had been steadily growing for 3 months in a row without big bounds till the March 2. At that day before market opened the company had announced the failure of reaching the endpoint of combined drug for colorectal cancer. The news stimulated investors negative attitude and the Mondays opening share price dropped immediately to 0.755, which was almost the lowest price during two years period (slightly lower price was reached next day). Looking in the future, we should think of the fact that market might have overreacted to the fail and the price will increase little bit. On the other hand if the pharmaceutical company dont have a product prepared for sale, it wont have earnings in near future and the bankruptcy can occur. So, at the moment the company is in deep trouble and only good news can help to recover. Whether to invest in the company or not investors should decide based on whether there is another possibility to develop a drug and if the market hasnt overreacted to the fail.

AEterna Zentaris Inc. (AEZS) price index change during week 14; Source: http://finance.yahoo.com/

This week was unfortunate for Dearborn Bancorp, Inc. (DEAR) - the holding company for Fidelity Bank in Michigan. The share price experienced a massive 53.33% decrease, continuing the trend of last Friday: the main drops occurred in the beginning of the week throughout Monday and Tuesday. It was a consequence of Fidelitys failure, as The Michigan Office of Financial and Insurance Regulation closed the Dearborn Bancorp Inc. subsidiary on 30th of March. On the same day Fidelity bank (Michigan-based) was acquired by Huntington Bancshares Inc. through a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC). Fidelitys 15 branches began operating as branches of Huntington the next day. Even though Dearborn Bancorp ended the week with a slight recovery, closing at 0.075 USD per share, future prospects still look vague. However, if the situation remains stable, the stock should regain some of its lost value.

Dearborn Bancorp, Inc. (DEAR) price index change during week 14; Source: http://finance.yahoo.com/

All three major stock market indexes plummeted severely in week 14 due to negative impact from economic data releases and Feds officials announcements. Friday, when market was already closed, U.S. released its Non-Farm Employment Change data which fell short from its forecasts. It is expected that market will adjust downwards due to these news and the beginning of week 15 should be marked by a drop in stock prices. Investors attention in week 15 will be targeted mainly at Chinas economic indicators and at the beginning of U.S. earnings season, which should determine trend of stock market indexes next week. Review by: Tautrimas Lengvinas, Edgaras Marcinkus, Nerijus Ruginis, Kipras Kazlauskas