Manufacturer and supplier of lead-acid batteries Exide Technologies (NASDAQ:XIDE) is the top gainer after the markets opened on Friday morning. The stock price of Exide has surged 21.90% to 1.67 at 10.01 am EDT on April 5, after a dramatic drop of 47.41% experienced on Thursday. The fall was caused by media reports about Exide failing to refinance $55.8 million in outstanding convertible notes.
However, today the analyst Craig Irwin from Wedbush qualified media reports on Exide Technologies (NASDAQ:XIDE) as “poorly sourced”, Streetinsider said. “Given the convertible notes are due September 18th, 2013 and the company has consistently said it plans to repay the notes out of available liquidity (not refinance) we believe the statements were aggressive, premature, and inconsistent with company communications. The balance of the company’s outstanding debt does not come due until 2018,” the source quoted Irwin as saying.
Yesterday The Rosen Law Firm announced that it is investigating securities claims against Exide Technologies (NASDAQ:XIDE)according to which, the company is accused that it didn’t disclose that its area facility in Los Angeles was improperly emitting arsenic, Fort Mill Times reported. The source also said that the South Coast Air Quality Management District released a health risk assessment according to which, Exide Technologies (NASDAQ:XIDE) has been exposing employees and resident who live downwind of the facility to cancerous levels of arsenic.
Also on Thursday Exide Technologies (NASDAQ:XIDE) has released a statement saying that it retains Lazard as its advisor on financing alternatives to maximize the value of the company for all shareholders. The company expects a $50 million in free cash flow at the end of the fourth quarter of 2013 fiscal year with total liquidity at March 31, 2013 bigger than $230 million.
Exide Technologies (NASDAQ:XIDE)’s turnover was at some 5.3 million on Friday morning. The stock closed at $1.37 in deals worth about $23.0 million on Thursday.