It's the hottest Hawaii-based stock in years. Hoku Scientific is in position to reach the heavens in a scant two years.Hoku Scientific (HOKU $11.13)
Chart
Grade: B-
The skinny: This Co, based out of Kapolei, Hawaii, has switched gears in the relatively recent past, but its tenacity in the face of doubters is impressive. The current PPS ($11.50) may have all of the good news baked in so this will be a better buy at $9. Then again, there could be more good news coming around the pike. Like Dendreon, this is a small cap that is a couple of years away from real fruition. Even its processing/manufacturing facility in Idaho won't be completed until 2009. Definitely not for the squeamish, but certainly worth watching closely.
X factor: Can Hoku Scientific survive and fulfill its contracts (non-binding) worth $1.2 billion? The daily trading action on this solar/polysilicon Co is so intense, the PPS leaped from $4.50 to $12.80 on news about the contracts. All in a two-week span of June.
Summary: As a side note, CEO Dustin Shindo, is a Waiakea High School graduate and former baseball player. In fact, much of the executive staff hails from the islands. For a local fan, it's easy to love this Co. As a stock, HOKU is not fundamentally sound — not yet, anyway. No young company that hasn't hit its proverbial sweet spot with revenues and margins is going to be a low-risk investment. The risk/reward, however, is clearly appetizing for small-cap lovers.
No comments:
Post a Comment