Volume Spike Investor

We are seeing a downward volume surge in Zoltek Companies Inc. (ZOLT) this morning.  The company’s stock had already fallen hard Monday after RBC went very cautious ahead of earnings, but then earnings came out.  Earnings were down 54% down to $2.3 million net income on an 11% revenue gain to $45M.  The company saw lower wind turbine orders and those that are in the hopper have seen delays.

Shares were down 8% earlier but now shares are down over 15% at $15.25 on 32,000 shares as of 8:52 AM EST.  This will mark new 52-week lows as the prior range was $17.75 to $48.78.  Its new market cap if these lower prices hold should be approximately $510 million.  This had loosely been endorsed by Jim Cramer ahead of his wind focus.  Maybe not all wind stocks are pure home runs after all.

JON OGG

August 12, 2008