HOKU, WTF?
A reader, Bluedog, pointed this stock out to me. I see no news...
However, they seem to be in a good industry. They operate in "clean energy technologies." Still, the run since mid-June is crazy. Anyone have any color on this stock, please leave it in the comment section.
Time to leg into a short here, MT?
UPDATE: Stockbee has a small post on the price action that's interesting.
3 comments:
DT,
Here's an article from Forbes today. I have trouble believing the stock gained 25% today based on news from last Wed. I'm going to monitor for a possible short tomorrow.
BD
The sun is shining on Hoku Scientific.
Shares of clean-energy technology company Hoku Scientific (nasdaq: HOKU - news - people ) began rising at the opening bell on Monday, and were up 25.4% rise, or $2.22, to $10.96, in late trading.
The catalyst for the advance was not clear, but it may have been the Wednesday announcement that the company's Hoku Materials subsidiary, established in February to make polysilicon for the solar market, signed a definitive contract for the sale and delivery of the product, used to make solar sells, to Global Expertise Wafer Division, a subsidiary of German solar company Solar-Fabrik, over a seven-year period beginning in the second half of 2009.
According to the Kapolei, Hawaii-based company, the contract is worth up to approximately $185 million.
The shares also rose on Thursday, gaining 38.1%, or $2.65, to $9.60, but the additional rise on Monday could have reflected institutional investors jumping on the bandwagon.
Of note is the company's daily trading volume. On Wednesday, before the company made its announcement, 2.2 million shares were traded. After the announcement, volume spiked to 26.6 million shares on Thursday, then fell to 9.4 million on Friday. In late trading on Monday, the volume was 29.5 million shares.
Wow, well, I haven't checked the numbers, but that's a pretty big contract.
Thanks for bringing this one up, BD. Should be interesting to watch. If only I had shorted when I first posted the graph!
-DT
I feel the same way about not buying today. It just seemed ridiculous how high it was getting. It didn't even cross the 10 day EMA until late afternoon. I'd expect a selloff tomorrow but it's holding up AH. We'll have to keep an eye on it.
BD
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