Yesterday CPOW stock almost doubled its price already at market’s open and then closed the trading with 85.57% of added value at $0.13. Trading volume of 34.65 million shares was a record in the short trading history of Clean Power shares, and it looks like some stock promoters captured the action and featured the stock in their trading alerts during the day, additionally powering the volume.
The main cause for the surge appears to be the filed on Wednesday evening financial report of the company for the three and six months ended October 2010, which reported significant growth in the sales on an year-over-year basis, the two main components of the sales being canola meal and canola oil. The weak cash position and the much higher debts that the company is holding were obviously not a problem, especially for the fact that CPOW has recently entered the hot clean energy sectors where financing opportunities for promising companies should be available.
In April this year Clean Power acquired 94.8% of the shares of General Bio Energy Inc. (GBE) through a reverse merger in exchange for the issuance of 28.4 million restricted shares of Clean Power common stock. That shares require a registration with the SEC before they can be sold on the market. GBE began reporting product sales in July 2008 and it operates an oilseed crushing, bio-diesel refinery, and a plant for environmental lubricants and nutraceuticals in Regina, Saskatchewan.
Though the enthusiastic comment on the “impressive results” and on the planned growth by the CEO, the sales of CPOW are actually rapidly declining in the past three quarters and the company still needs to raise funds over the next year in order to implement its expansion plans and maybe to report a profit at some time in the future.
A previous event was also not awarded with a press release and a comment from the side of the management. In November, the company increased the number of its outstanding shares from 78.4 million to 235.3 million through a two-for-one stock dividend.
