SmartMoney has an article about today’s moon shot stock DSTI. I posted to my watchlist this morning when it was around $8. (I hope some of you caught it!) It closed at 11.09 today and has the makings of another mania stock. Here’s a snippet form the article and charts of the action in the stock and the warrants (DSTIW):
The designer of silicon-free solar-power cells just signed its first big commercial contract. Traders enthralled by the technology’s potential and the tiny stock’s momentum bid it up 61% to an all-time high of $11.09.
Blitzstrom, a leading European maker of solar power equipment, agreed to buy DayStar’s TerraFoil cells through 2008. The pact could be worth up to $60 million based on current market prices for photovoltaic cells, according to the company.
“This is a big deal for them. DayStar hasn’t sold a thing yet and now it’s hooking up with a serious partner,” says Kenneth Reid, editor of Spear’s Security Industry Analyst. He is following DayStar because of its technology’s potential to power surveillance drones. “In addition to using DayStar products as is, it looks like Blitzstrom is going to incorporate some of DayStar’s technology into its existing product line.”
But those plans highlight DayStar’s other problem, financing. The microcap company still has no timetable for turning a profit.
For 2004, DayStar posted a net loss of $4.7 million on revenues of $157,412. As of March 31, it had $2.2 million in cash after posting a first-quarter net loss of $1.4 million on revenues of just $34,597.
DayStar went public in February 2004. At the time, it sold 2.1 million warrants exercisable at $6 and 4.2 million warrants exercisable at $10.
“It has always been our business plan to augment our finances through various mechanisms, and we are working on those as we speak,” says Tom Polich, DayStar’s general counsel. “We have no immediate plans to do a secondary offering. However, the $6 warrants are callable at $8.50 and we plan to call them in. That will bring $10 million to $12 million. But as we advance the technology, hopefully that will draw more funding sources to us.”
