China Recycling Energy Corp. (NASDAQ:CREG)
Is there a “Trump” effect at play with China Recycling Energy Corp. (NASDAQ:CREG)? Over 23 million shares have traded on a stock that has a daily average of under 22,000! CREG stock began the day at $1.27, yesterday’s close, then a steady ascent began until a high of $6.74 was established. What accounts for the massive volume and price increase? There is no news publicly available that could account for a volume increase of 1,391% or a share price increase of 350% – except, possibly, that the President of the United States did something today that could increase revenues for the Chinese company?
Prior to today’s price action, China Recycling Energy Corp. (NASDAQ:CREG) had a market capitalization of just $11.2 million. The company is in the recycling energy business in China. It designs, finances, constructs, operates, and transfers waste energy recycling projects to mid- to large-size enterprises involved in high energy-consuming businesses. It also provides waste gas-to-energy solutions comprising the waste gas power generation system that utilizes flammable waste.
CREG Stock Performance
CREG shares traded, adjusting for dilution, above $60 in early 2014. While the shares have had some large daily losses, today counts as the largest daily gain in years. Before today, CREG shares were down 15% year-to-date, and down 11% for the year. This month had offered a bit of a reprieve to the downtrend as CREG shares were up over 20% for that time.
EPS has been trending down for the past four years. In 2013, per share profits were $2.90, but by 2016 the company posted a per share profit of just $0.22. Of note is the listed cash position for the company – posted at $6.60 per share. Even considering today’s gains, the shares are still trading at a significant discount to the listed cash holdings.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.