Shares of Onsale (Nasdaq: ONSL), an Internet retailer that sells some items at cost and also runs an auction house, soared more than 48 percent on Monday, closing up 15-3/8 to 47-1/4.
What’s interesting about this is that there was no real news to prompt the climb. Sure, Onsale announced that its auction site had received its 10-millionth bid on Sunday, but that hardly justifies that kind of climb. It appears some financial journalists were completely flummoxed by Onsale’s rise, and linked the “what-the-hell” climb to the minor announcement.
It’s hard to tell what’s really going on, but when a stock moves like that, there’s usually a major deal brewing. This is fast becoming the era of consolidation, and it looks like Onsale could be on somebody’s wish list.