HomeBase Shares Soar 17%; No Specific Reasons Seen
HomeBase Inc’s stock jumped 17% Thursday, but the home improvement company said it has no news to announce and would not comment further.
The Irvine-based company’s stock closed at $9.06 a share, up $1.31 in heavy trading on the New York Stock Exchange. A total of 671,000 shares changed hands, triple the average daily volume the last three months.
Analysts said they could offer no specific reason for the surge. “They’ve been getting a lot of favorable press by some retail analysts who follow the company,” said Don Longo, editor of National Home Center News in New York. “The company seems to be on the right track in terms of some of the turnaround things they’ve been doing. But why now? That’s the question.”
As a result of the unusual market activity, the New York Stock Exchange asked HomeBase to issue a statement indicating whether there were any corporate developments. The company responded that it does not comment on unusual market activity or rumors.
Industry insiders have speculated that HomeBase could become an acquisition target as other companies push into Southern California’s lucrative home improvement market.
North Carolina-based Lowe’s Home Improvement Warehouse announced in April that it plans to open 100 stores in California, Arizona and Nevada by 2003, beginning with a Southland store next year. Eagle Hardware & Garden, based in Renton, Wash., also has announced it plans to expand in Southern California.
