Altair Nanotechnologies stock [Mechanical engineering]

Altair Nanotechnologies stock

Altair Nanotechnologies: Be Careful Of This Stock

Altair Nanotechnologies, Inc. (NASDAQ:ALTI) has seen its shares soar over 200% during the last two weeks on heavy volume. However, the lack of news from the company combined with poor fundamentals leads me to believe that this is a temporary pump of the stock and the stock will soon retreat from $8 back to the mid $2 range. I think this company is a compelling short, especially at current levels, however, when a company is pumped up to such extreme levels, it can take some time before the pullback occurs.


The stock had been trading in the $2 range for about six months, when without any warning, it exploded 200% on heavy volume. When moves like these occur without any news it is usually an indicator of a stock being temporarily pumped [see figure 1 taken from TD Ameritrade's news platform]. Additionally, only 110, 000 shares are short which is less than 3% of the float, which tells us this was not a short squeeze either (the last "Days To Cover" number is also meaningless since volume has reached over 1 million shares a day) [figure 2]. Something to note: from the company's latest 10Q we can see the company has more than 400, 000 outstanding warrants with an average strike price of almost $15 [figure 3]. So if you're asking yourself who might want to pump the stock to astronomical levels, perhaps it is someone wanting to exercise the warrants.


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