This one of those great days when I get the opportunity to say; I told you so. The Norwegian solar company REC, who yesterday claimed a new groundbreaking technology at the U.S. Moses Lake plant, got a helluva ride at Oslo Stock Exchange Wednesday. Someone even throve in a law suit.
“The existing plant has a recurrent history of violations of licenses, chemical spills, fires and accidents.”
Victor C. Jansen
After jumping more than 8% in the last minute of trading, Tuesday, the REC shares continued to rally when the stock market opened in Oslo Wednesday morning. But only for a few minutes more. Then the share price nose dived, and a group called “RECisExceptional” announced that they’re filing a law suit against the company.
As I wrote in yesterdays comment: “This can go either way, and the move can be big.”
REC went from NOK 23,6 to NOK 25,6 yesterday, gained another few percent Wednesday morning, before it turned down to 23,6 again and finally ended with a loss of 7,24% at NOK 23,81.
That’s a spread in the neighborhood of 20% – and the kind off moves that makes money.
I would not be surprised if a few day traders popped a bottle of champagne tonight.
REC obviously failed to impress the analysts with its grand announcement Tuesday afternoon.
They’re still worried about the companies fast growing debt, and still no reassuring prospect of future income.
But to make the day even more entertaining, a group that calls themself “RECisExeptional” made a public statement that says they are filing a law suit against the company. The U.S. company REC Silicon, that is.
The lawsuit has been submitted to the District Court of Spokane, the Puget Sound Business Journal report.
The group, led by real estate investor Victor C. Jansen, believes that the existing plant has a recurrent history of violations of licenses, chemical spills, fires and accidents.”
In addition, Jansen says that the expansion has been approved without environmental permits.
The group want to halt RECs expansion.
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