National Penn in wild price swing

Shares of National Penn Bancshares, Boyertown, rose past $5 in afternoon trading after falling yesterday to $3.60, an 18-year low. The company had blamed yesterday's price drop on "unusual trading activity" after it ended a seven-month fundraising campaign that raised $73 million through a discount stock sale.

But yesterday's drop also capped a two-month, 60% decline due to "deteriorating credit quality, a dividend cut, and concerns regarding capital adequacy," Jason O'Donnell, bank analyst at Boenning & Scattergood in West Conshohocken, told clients in a note. He said the stock has fallen to bargain levels.