Shares in SmartHeat Inc. (NASDAQ: HEAT) is undoubtedly the hottest penny stock today, currently up $2.37, 86.50 percent, at $5.11. Amazing how such small company could reach as high as $6.00, 118.98 percent, in today’s trading session after reporting a loss for 2011.
SmartHeat, sellers of plate heat exchangers in the Peoples Republic of China, reported a loss for the fourth quarter after recording write-downs from two recent transactions. The rally on the penny stock, HEAT, is currently trading 1.466 million shares, more than 48 times the 5 day average volume.
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SmartHeat reported that it was also initiating various cost-cutting measures in an effort to preserve capital. It appears that today’s surge in stock price is from the company statements claiming that slow demand in HEAT‘s markets was temporary and rigorous cost controls were promised to keep the company’s budget healthy.
SmartHeat is such a tiny company that even after its penny stock gained 119% gain to $6.00 in intraday trading, HEAT stock still has a market value of under $25 million. Average volume is only around 34,000 shares or so but the penny stock has traded over 1.4 million shares already today.
HEAT Stock Snapshot:
Avg Vol (3 month): 34,759
Avg Vol (10 day): 26,667
Shares Outstanding: 3.86M
Float: 2.72M
% Held by Insiders: 36.27%
About SmartHeat Inc.
SmartHeat, Inc. is a US listed company operating in China’s clean technology, energy savings industry. We are the leading provider of PHE products to China’s industrial, residential and commercial market with our products used by multi-national and domestic firms such as Motorola, Veolia, Beijing International Airport, Sinopec, and AVIC Air.
Its incredible the rise and fall that the highly speculative Chinese companies show investors. What is even more incredible is the bounce when these penny stocks show a sign of life. What we are seeing today in the penny stock HEAT is not a bounce, but a cannon shot towards the moon. (At least tonight’s moon)
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