But after the bottom from Wednesday, yesterday SOPW jumped promptly 35.29% up and closed at $0.23. This seems to have happened on no official news by the company and the sudden appreciation could have been driven by some traders noticing that the current value of SOPW shares is still severely underestimated.
The market price seems not the reflect the considerable increase in the revenues, maybe because SOPW business is still highly unprofitable and recorded for a third subsequent quarter an net loss of over $3.2 million dollars. It is in particular the selling and administrative costs that keep growing and make the negative earnings, so that the management could afford so far to spend only insubstantial amounts on research and development.
Another problem were by the end of June the over $15 million in net receivables. As a part of them, the company had to collect $9.1 million, owed by another company in connection with the constructing, improving and equipping a photovoltaic system based in California. Though, the borrower has signed a loan agreement at the end of July the proceeds from which will be used to settle the obligation.
Traders are now probably hoping that the stock has already hit this year’s bottom and the better volatility will now make is move upwards within the trading channel.
