Yesterday, while pursuing a strategy for offshore manufacturing, DayStar Technologies Inc. (NASDAQ:DSTI) stock sprinkled the star dust of hope that new future comes.
In addition to the company’s press release about discussions for new partnerships, investors were widely alerted through speedy midday stock alerts about the shooting star DSTI.
There, the information that DSTI stock is “Up 65.71% in the morning trading” fueled additionally investor interest towards the stock.
The final result was the amazing 95.70% price increase on more than twenty times the average volume traded.
There is no mistake. The company’s press release was related only to some future plans for offshore manufacturing of its solar modules. It didn’t say that DSTI discovered a new technology, or the management raised funds or…
Contrary to the above, on Wednesday in its SEC filing DSTI announced that last week DSTI’s landlord forfeited and terminated the company’s lease for the premises in Newark, California.
In order to find any strong argument for yesterday’s stock explosion, we can go back to DSTI history of important events.
At the end of May, DSTI received a notice from NASDAQ, indicating that the company did not comply with the audit committee requirements for continued listing on the NASDAQ. The non compliance was related to Mr. R. Tonsoo, who served on the company’s Board of Directors as an independent director and audit committee member, but did not stand for re-election at the annual meeting held this April.[BANNER]
As of today, DSTI has no SEC filings with updates on both issues, the audit committee issue and the significant material interest for the offshore deal. The last company’s financials are also not convincing in justifying the almost doubling value of DSTI stock.
For the period from July 2005 (the inception of the development stage) to March this year, DSTI reports a net loss of $118 million. The net loss per share is $1.61.
In this row of thoughts, the shooting DayStar stock sprinkled star dust, without reminding that shooting stars may rise with blinding light and star dust, but are after that burning out in the dark.
