The shares of NaiKun Wind Energy Group Inc. (CVE:NKW), (PINK:NKWFF) were one of the surprises on the TSX Venture Exchange (CVE) yesterday. After going down for about a month, they suddenly looked up again. They made this quite convincingly – in terms of price and in terms of volume. No new developments were announced to explain the surge.
On the CVE, the stock added more than a third to its value by jumping 36% up to finish the trade at $0.225. The upward march of NKW was additionally supported by the notable turnover of 3.38M shares, much larger than the 30-day volume average.
NaiKun is a renewable energy company with a focus on offshore wind energy projects. The company is aimed at developing Canada’s wind energy project off the northwest coast of British Columbia. The Canadian wind energy industry is an attractive sector and has grown to become very popular in the country.
As seen from several online posts, around 430 companies operate in this sector at present. NaiKun has the privilege to be among these. Supposedly, this might be one of the explanation for the current spike of the stock.
As the company has not issued any new releases since mid-March, it is hard to find other obvious reasons for the shares’ performance. A speculative rise is another possible assumption, but there are no data to confirm this.
The future behavior of the stock is equally difficult to be foreseen, especially in the absence of any new company announcements for more than a month now. Perhaps, this is something that NaiKun will have to alter in the future. It would probably be a good idea if the corporation began providing investors with more information about its development, and with greater regularity.
Otherwise, NaiKun is with no huge financial problems. At the end of 2010 it had over $7.25M in cash and equivalents and a working capital of $7.05M.
The negative side of the financials (yes, unfortunately, there is such): the company has virtually no revenue from its activities and has recorded a comprehensive loss of $532K for the last quarter of 2010.
To the negative facts we might mention another one. At the start of today’s session, NKW went 11% down, dropping below the $0.20 price level once again.
