C&D Technologies,Inc.(PINK:CHHP) started the week with a 16% increase in the share price coupled with solid trading activity. The daily session closed yesterday at $0.28 per share. This positive development on the market is due on one hand to newsletter alerts, but also to financial documents released by the company yesterday regarding certain changes in the beneficial ownership of CHHP shareholders.
In fact, since the third week of Dec. 2010 the price has followed a trend of slow upward movement, mainly due to announcements from the company about plans to restructure and cover its debt through issuing stock to debtors. The actual financial documents concerning this conversion were released yesterday, and similar to December an increase in the price of the stock followed. Yet, if the outcome on the market follows the pattern from last month, it is possible that the positive trend would be short-lived as the initial pace of price progression might soon disappear. Furthermore, once the owners of the newly issued stocks decide to place their shares on the market price fluctuations are sure to follow.
Last year was a tough one for the technology company producing systems for power conversion and storage of electrical power. Besides the financial reports showing mounting liabilities and decreasing profits, C&D Technologies had to migrate from NYSE to the Pink Sheets because the company no longer complied with the minimum standards for listing on the NYSE. What happened was that the market cap of the company fell below $15 million, which led to two consecutive notifications from the NYSE and the above mentioned migration.
Whether the company can turn around the obvious free fall from last year into at least slightly positive financial data in the 2011 SEC fillings is a matter of smart strategic decisions and gaining market share for its products again. At present though no such plans had been revealed, replacing them with debt restructuring policies. And if the situation remains at its present stance, not only sharp stock price fluctuation might follow, but other far more serious consequences concerning the overall existence of the company.
