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.

CHART AND RECENT HISTORY

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.



FAQ

avatar
A Look Into Nanotechnology Stocks.

Penny stocks are an attractive proposition for many investors because they cost a lot less to invest in. But while they can offer good returns if the company does well, they can also be risky and involve a higher risk of loss. As such, you'll have plenty of penny stocks to watch and consider as time goes by.

With every week that passes there are fresh stocks to consider and new ones to watch, but a promising one at the moment is the Dynamotive Energy company. One of the reasons why this could be a good pick is the fact that the company is devoted to green issues. It produces fuels for ca…

Related Posts