Shares of Global Power Equipment Group Inc. (PINK: GLPW) are seeing some huge activity in today�s trading, with volume up from daily average of 16,000 to 4.25 million. The OTC stock is up 3% to $2.06 in today�s trading. It reached a high of $2.08. Tulsa, Oklahoma-based Global Power Equip is a provider of power generation equipment and maintenance services to international and domestic customers.
The spike in the stock comes after the company announced its first-quarter results yesterday. The company reported first-quarter revenue of $157.2 million, up from $126 million reported in the first quarter of 2009. It reported net income of $11.2 million, or $0.08 per share, down from $12.6 million, or $0.09 per share reported in the first quarter of 2009. Commenting on the first quarter, David Keller, president and CEO of Global Power, said that the results reflected the benefit of having two platforms in the power generation industry. Keller, however, cautioned about the underlying fundamentals in the company�s end markets.
In April the company�s shareholders approved a reverse stock split. On taking effect, the reverse stock split will combine the issued and outstanding shares of the company�s common stock into a smaller number of shares. The ratio for the reverse stock split will be determined by the company�s board. The company mentions that it relies on a small number of customers to generate major portion of its revenue. A loss of any of these customers could negatively impact on the company�s operating results. The company also says that it intends to apply for a listing on the NASDAQ Global Market. Also, the company cautions that the reverse stock split could have an unintended adverse impact on the stock.
The OTC stock has a 52-week range of $0.55-$2.10. Currently, the stock is trading above its 50-day and 200-day moving averages.
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