Sequenom Stock Now the Plaything of Rumors

It will be interesting to see what happens to Sequenom (SQNM)'s stock on Monday when the markets open again. The troubled company left observers with a Thanksgiving mystery on Wednesday and Friday: Why would its shares jump from $3.20 to $4.20 on no news whatsoever? And who would buy stock in this basket-case of a company?

Back story: The former vp/commercial development has been accused of insider trading; and it axed seven members of its management after the board found they had presided over corruption of the data for its Down Syndrome diagnostic test, T21/SEQureDx.

With the company a long way from producing any earnings on T21, the proper reaction from investors should be to sigh, shake your head and look elsewhere. But no. Crazy day traders are all over it:

"I am gambling with this one. I am hoping the mishandlings in the Trisomy 21 test were due to incompetent oversight, rather than inadequate science."

That's the most sensible take. Here's a bigger gamble, via the Barron's blog:

Sequenom (SQNM), the genetic research firm whose senior management resigned in September when flawed test data was confirmed for its therapies, is falling 8%, to $4.09, after running up 40% yesterday on no apparent news. Speculation has run high since the management implosion that the company is a takeover target.

And wilder still:

... investors may have been speculating that the diagnostics company will soon release positive data regarding its prenatal Down syndrome test ...

Dream on. As the company said on its last investor call, there's no specific date for that.

More from CBS News