Among the huge NASDAQ gainers yesterday, DayStar Technologies’ stock bounced off its upper trading price range though a 37.25% increase within one day. The volume was also remarkable, more than 580,000 shares changed hands, most of them during the second half of the trading session. Though the close at $1.40, the price volatility was immense and in response to the controversial investor attitude from yesterday.
Yesterday, probably mentioning the stock of DayStar among the stocks with the highest potential gains worked for a price appreciation, or at least for a high volume. The author of this statement, which sounded more like a promotion, even says that the upside potential for DSTI from its current market price were the remarkable over 1200% and that the average analyst target were above $13.
On the other hand, an 8-k by the company from yesterday reveals that it is about to lose its principal executive offices, along with its main manufacturing facilities, all located in Newark California. The landlord has been suing the company for more than a year for causing severe damages on the facility and now, it seems that the DayStar has failed to fulfill its financial obligation under the preliminary agreement. The filing yesterday said that the company’s lease for the premises has been terminated and the landlord has received a judgment for possession of the premises.
Now, it looks like for the developer of solar photovoltaic product, founded back in 1997, the chances to make any revenues at all will start melting down even faster than before. And without revenues, the over $5 million costs per quarter are hard to get covered. Over the last months, cash came through some bridge financing agreements, which however in turn came with the issuance of convertible notes and warrants.
Also, there are no news about the management’s plan to raise the urgently needed funds and at the same time protect the current shareholders from dilution through a rights offering. Though, as the current market attitude towards their stock cannot be called favorable and as on top of all DSTI stand under pending NASDAQ delisting, it looks like it is not the proper time for such experiments.
