Sunworks Inc (NASDAQ: SUNW) is making a run for the top in the market this morning, and I mean A RRRUUUUNNNN! The stock is trading on gains that are better explained in multiples than in percentages.
But what the heck is going on here?
There’s no press, no SEC filings, just massive gains. Here’s how I see it:
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SUNW Stock Is Rocketing
So, there’s no news, no SEC filings, no social rumors. We’ve combed the web, and there are no catalysts to speak of. What’s the deal? Why is Sunworks rocketing?
A probable cause starts with SPI Energy. The stock was up more than 4,000% intraday and closed on gains well over 1,000%. You read that right. At one point, if you had $1,000 in SPI the prior day, you could have sold your position for more than $4 million. Talk about making millionaires.
The move came after SPI announced that it would be moving into the electric vehicles market, making both the vehicles, and the chargers that keep them on the road.
No, SUNW hasn’t said it’s making a big break into the EV market like SPI, but it is a clean energy play, which is all the rage these days. Ultimately, the world is looking for a way to reduce our carbon footprint and lead to environmental improvement.
So, SUNW is in a hot space at the moment.
As investors pulled out of the SPI move, they looked for another opportunity. Sunworks stock seems to fit the bill. The stock trades with a low float, and recently, short interest has been pretty high. All it would take is a few bills and this stock would start moving.
Well, moving it did. As soon as some interest started to pile in, shorts raced to cover leading to a short squeeze and dramatic gains. Considering what we saw with SPI yesterday, the market is making some radical moves. Who knows how high this thing could go!
Final Thoughts
SUNW stock is making a dramatic run and FOMO may lead you to dive in. I urge you, be careful. Short squeezes can reverse just as fast as they started and significant losses can be realized.
Nonetheless, if you know what to look for and you believe there’s more room in this run, you could be right and the potential in SUNW stock could be incredible.
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