Akeena Solar (AKNS), Eromanga Hydrocarbons (ERH.AX, ERHYF), and Beacon Power (BCON) are all on a tear this week.
Akeena Solar got a big upgrade, with an analyst prediction that the shares would double. They’d have to, to get back to where they were when they were in January, but so far it’s working — up almost 20% today. This one is a solar installer that I first saw teased when the shares were around $8.50 … today they’re almost back to $7.
Eromanga Hydrocarbons is a small Aussie company with some Brazilian oil properties — some drilling results appear to be helping them, their shares are up huge since they were teased in March (and I wrote about them, however briefly). Taking a breather today, down 10% or so, but still up 200% or so in just a week and a half, with some huge volume spikes. Read the comments on the StockGumshoe site to see that one reader thinks they’ve got good things ahead … and he also notes another stock being touted by the same folks. They teased this one as having the potential to go to $5 … it’s at about 45 cents now, up from 15 cents.
And Beacon Power is back to about where it was last Summer when some Taipan newsletters were touting it as the “fuel-free power plant” — they’re working on flywheel power storage, which might be a good way to get steady output from unsteady power sources like solar and wind without using batteries. The first big spike in these shares coincided with the original newsletter touting, but this most recent move, up more than 10% today, is on the back of an analyst buy recommendation and a $3 price target (price is about $1.90 now), to go along with his prediction that they’ll be able to address a $700 million market for energy storage.
I’m not suggesting that any of these are great ideas, just that in the short term they’ve been huge performers. Sometimes that’s a first step to greatness, if the market is suddenly made aware of a company’s potential and that interest continues to grow, but just as often it’s a hype-drive spike that quickly falls back. In these three cases there are at least real reasons — drilling results and raised analyst estimates, so this is not just newsletter hype.