Sauer Energy, Inc. (OTCMKTS:SENY) Surges on News
After am underwhelming week of price action, with the stock sliding nearly five cents, yesterday Sauer Energy, Inc. (OTCMKTS:SENY) went through the roof. The ticker moved many times its average volume, shifting 2.2 million shares and closing 79% up, at $0.21 per share.
With no discernable stock pumps targeting SENY after the March 2013 round of touts, the ticker seems to have surged on a press release issued by the company yesterday. Shortly before the market opened, SENY informed shareholders that it ‘plans’ to launch new models of its WindCharger system and is gearing up for expanded production.
The press release was further padded with optimistic information about the improvements in R&D the company has implemented over the recent months. Even though the PR was mostly forward-looking, it seems to have excited traders enough to send the stock through the roof.
The company’s fiscal year ends August 31, so it will be a while until their next 10-K is published. So far, investors have their most recent quarterly for the period ended May 31 to look at and the report contains the following figures:
- $50 thousand in cash
- $328 thousand in current liabilities
- zero revenues since inception
- $170 thousand in quarterly net loss, $4.2 million in accumulated deficit
It may seem a little difficult to get too excited about this kind of balance sheet but it seems enough traders thought otherwise. The company claims that it’s now transitioning out of the development stage and reigning in R&D expenses but its significant shortage of funds and lack of revenues may force it to fund operations by the issuing of common stock. Additionally, the spike SENY charted yesterday is very likely to retrace as such huge percentile jumps are very difficult to sustain and keep a level price after them, so caution is advised.
SENY is currently another 23% up in early trading.
Among other tickers that held investors’ attention yesterday was Liquidmetal Technologies, Inc. (OTCBB:LQMT) who managed a 18% green close on a morning burst of volume and a press release.
