An unprecedented spike in the stock price of a renewable energy company called Greenhunter Energy Inc. (NYSE-ALT:GRH) is raising eyebrows on Wall Street today.
Greenhunter's price jumped 62% yesterday to close at $1.86. On an average day the company trading volume is around 100,000 shares, but on Tuesday more than 1.6 million were traded. At this point we can only go on speculation as to why this happened and so far Greenhunter isn't offering any explanation. The company says it has a policy in place "not to comment on unusual market activity."
Last week, Greenhunter received a warning letter from the New York Stock Exchange over concerns that the "...company [was] reporting a stockholders’ equity less than the minimum requirements with operating losses in its most recently completed fiscal years," and "the Company has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, that the Company will be able to continue operations and/or meet its obligations as they become due as set forth in Section 1003 (a)(iv) of the Company Guide.
Greenhunter has committed to submitting a plan that will address the concerns outlined by the NYSE by June 29, 2009.
According to their website, Greenhunter Energy, "was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector... and currently own[s] and operate[s] the nation's largest Biodiesel plant, located in Houston, TX, a Biomass facility in California and Wind projects located in California, Montana and New Mexico.
Stay tuned, I have a feeling there will be more to report on Greenhunter Energy in the coming days.
Photo courtesy of Rednuht.
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