Today was just another one, as HOKU closed at $13.70, an all-time high. The difference this week is that there has been no new news. Volume has picked up again, but not in the same force as it was in June when new contracts were announced.
In other words, the stock is stabilizing and investors are capitalizing. It's fresh new ground for the pioneers of Hawaii's most impressive growth company in years.
Despite the doubts of media — including Jim Cramer — and a horde of online bears, Hoku has secured $1.2 billion in contracts for its clean energy products for the next two years. Yes, the Co is still in its infancy and its plant in Pocatello, Idaho won't be completed for more than a year.
But this little Co could turn into the giant of all Hawaii companies. The stock? Investors have to be pleased. On June 12, HOKU traded at $4.50.
On June 14, HOKU traded as high as $7.95 after a 10-year, $678 million deal was sealed with Suntech Power (China). Say goodbye to the 4s and 5s. On June 20, the Co signed a seven-year, $175 million contract with a subsidiary of Solar-Fabrik AG (Germany). Say aloha to the 6s, 7s and 8s. The next day, HOKU set another all-time high, trading at $10.14 before closing at $9.60 on 26 million shares in volume.
Nice.
Two trading sessions later, on June 25, HOKU skyrocketed again as new investors and daytraders stampeded into the stock. HOKU hit a new high of $11.67 and closed at $10.75 on a whopping 33 million shares.
The $10 level, with a ton of new shareholders, proved to be a solid floor for the stock. HOKU traded up to $12.80 — a fourth new high in just 12 days — and closed at $12.08 on lower volume (22 million shares).
From $4.50 to $12.80 in nine sessions? That's a gain of 284 percent. Investors certainly like those contracts.
The ensuing two weeks saw Hoku's stock level out, reaching a mid-day low of $9.84 on July 2 as volume withered up. Merely the calm before another perfect storm.
On July 6, HOKU had its biggest volume since hitting its high and closed at $11.13 on 10 million shares. Say goodbye to the 10s.
The next day, investors continued to pile back on as Hoku closed at $12.65 — including a mid-day all-time high of $12.97 — on 11 million shares.
Two days later, on July 9 — this past Monday — HOKU rose to $12.73 mid-day for another all-time high. It closed at $11.90 on 11 million shares.
Yesterday, yes, another high. HOKU hit $13.66 mid-day and closed at $13.23 on increased volume of 11 million shares.
Today? Volume was down to 7 million shares — still hefty considering HOKU's 11-million float — as the PPS hit another high at $14.39 mid-day.
For investors on the sidelines, waiting for a chance to get back in at $9 or $10, the boat has sailed off. Even $11 seems like a longshot. The only obstacles in the stock's way would be a delay in the construction of the Pocatello facility and a seachange in the one of the most bullish markets of all time.
Why so much cyberspace for HOKU in Pupule's blog? This is timeless. Watching a baby giant take its first steps is more than a passing moment. It is to be treasured. Even for those of us on the sideline.
Disclaimer: Pupule Paul has no position in HOKU.
