China Solar & Clean Energy Solns., Inc. (OTC:CSOL) made a huge blast off when it went from $0.125 to $0.415 in a matter on four days. In the last two sessions, trading volume also spiked up along with the share price.
On Thursday, through an official 8-K report it became clear that CSOL had entered into a joint construction agreement. Given that there have been no other updates from the company, it can be assumed that this announcement was the sole reason for the stock surge.
The official filing revealed that CSOL had made a deal with Guizhou Fuziang Eco-Industrial City Investment & Development Co. Ltd. according to which CSOL would assist Guizhou in constructing certain green eco-buildings construction projects located in Guizhou, China.
The report also stated the total estimated cost of the project payable from Guizhou to CSOL are nearly $630 million and will be paid in three installments during the project. [BANNER]
Apparently, the hefty sum of $630 million had plashed in the eyes of the investors who didn’t hesitate to jump in the trading pool at the end of last week.
The 8-K also mentions that the joint construction agreement became effective on Monday, July 25 but was publicly announced three days later. However, there was suspiciously higher trading volume and a huge price spike on Tuesday which can a priori suggest that the trade was led by certain insider hands.
Nevertheless, it seems that the announced agreement has added a strong spark to the trade of CSOL shares. Only time will show how long it will be able to maintain the high spirits of the market.
