Why are shares of Navarre (Nasdaq: NAVR), which sells music, software and movies online, trading at around $14 (US$) today, when they were as high as $18 on Wednesday, after some really good news? Good question.
Navarre owns a majority stake of online music, news and sports broadcaster NetRadio, which filed for an initial public offering that will raise as much as $37.4 million. Navarre’s stock got a spike of more than three points on Wednesday, before closing at $15-1/8.
Navarre announced its intentions to spin off NetRadio last summer, but this dramatic climb and even more dramatic fall back to earth doesn’t make much sense. This stock looks like a buy right now.