Alternate Energy Holdings, Inc. (PINK:AEHI) stock fell down by 10.92% on Monday, while traded volume increased significantly, reaching 2.590 million. The high trading activity of the AEHI stock was spurred by both news and promotions.
Last whole week, AEHI stock had been rising step by step, after it was featured in a promotional newsletter on Sept. 26. A week later, AEHI was featured again in a stock alert letter, this time with no effect, as the price slipped down the next day. As a whole, the company was enlisted several times in promotional newsletters throughout September, causing the sinuous curves in the stock graph.
On Sept. 30 the news spread out that several members of the directors board and management team had purchased AEHI shares. Don Gillispie, CEO of AEHI, commented that this was indicative of the management “strong confidence in the outlook for the business”. However, it is not exactly clear what it is that makes Mr. Gillispie so optimistic.
AEHI is a company, whose major goal is to acquire and develop a nuclear plant site in Payette, and obtain licenses for its operation so that AEHI can be the first independent nuclear power producer in the US.
According to its quarterly report, the company’s expenses have increased by $2,9 million in the first half of 2010 as compared to the first half of 2009. Net cash outflow from operating activities has increased by $816 million due to the increase in office and board compensations and consulting services.
The tiny detail, which was surprisingly discovered, was the fact that according to Google Maps, the company’s address, featured in its website, turned out to be a residential house. Maybe it makes it clear enough where the actual office of the company is.
Finally, while AEHI stock price is being driven down by gravity, investors should estimate to what extent the price fluctuation is due to promotions.
