California-headquartered photovoltaic and green energy solutions provider SPI Energy (NASDAQ:SPI) is known mostly for developing solar projects throughout the United States, Europe and Japan. Consequently, SPI Energy stock investors typically seek to take a position in green industries and, more specifically, clean power.
And indeed, SPI Energy stock is one way to stake a claim in the green power movement. Yet, the company is now dipping its feet into some other industries. And two of those industries are red-hot among market traders.
In other words, a position in SPI Energy stock could offer some diversification. Plus, this stock recently regained compliance with a very important financial entity. So, that ought to provide some relief for the shareholders.
It’s definitely an unusual company and perhaps an even more unusual stock as the price action is absolutely wild. Thus, we’ll start with SPI Energy stock’s price moves as we delve into this fascinating up-and-comer.
A Closer Look at SPI Energy Stock
When you’ve looked at enough stocks, you start to see familiar patterns. In the case of SPI Energy stock, the pattern here is a share price that was once much higher, but then declined over time and became a highly volatile penny stock with occasional massive price spikes.
When I call it a penny stock, I’m using the definition established by the U.S. Securities and Exchange Commission, which considers any stock trading below $5 per share as a penny stock.
SPI Energy stock fell below the $5 threshold in 2017 and had been at risk of noncompliance with Nasdaq listing requirements for a while. In fact, SPI Energy received a delinquency notice from Nasdaq in March of this year.
Then in May, SPI Energy disclosed that it had received a notice from Nasdaq warning that the company’s stock was out of compliance because the bid price had been below $1 for 30 consecutive business days.
Thankfully, SPI Energy stock regained compliance with Nasdaq’s bid price rule in July. So, both the company and the shareholders evidently dodged a bullet there, at least for the time being.
Entering Into the EV Fray
It’s a crowded field now, but apparently SPI Energy is ready and willing to delve into the electric vehicle market.
Thus, the company revealed that it’s launching a subsidiary, EdisonFuture, with the purpose of to designing and developing electric vehicles and charging solutions.
Not a whole lot of details about EdisonFuture were provided in the press release. Thus, for now, investors will have to use their imaginations.
What we do know for certain is that EdisonFuture will be based in Silicon Valley in Santa Clara, Calif., and that it “will focus on the design and development of new EV technologies and plans to partner with major manufacturers, as necessary.”
It appears that this was enough information to cause a massive share price surge in SPI Energy stock. Only time will tell whether investors are truly in it for the long haul.
A Dash of Hemp for Good Measure
In case that wasn’t enough of a shocker, I recently learned from InvestorPlace contributor William White that SPI Energy also plans to venture into the hemp and CBD business.
As White reports, SPI “is teaming up with Native American Agricultural Company and the Navajo Nation to conduct its hemp and CBD business. This will have the three working together to cultivate hemp in the Navajo Nation.”
Somehow, this news didn’t cause a stock price spike like the electric vehicle news did. Perhaps this is because anything that touches electric cars is buzz-worthy nowadays. At the same time, hemp has lost some of its mojo in recent years.
Again, the details provided by SPI Energy are scant. But hey, at least we know that the company did obtain licenses from the Navajo Nation to test, cultivate, process, distribute and sell hemp.
The Bottom Line
What is a prospective investor supposed to do with all of this information? I would say that if nothing else, SPI Energy is far from boring.
And, it’s now a highly diversified company. If it can gain traction in the electric vehicle or hemp niches, then that should enhance SPI Energy’s revenues already derives from its green energy business.
Granted, that doesn’t make SPI Energy stock a must-own asset. However, it might be worth a try for traders seeking something truly unusual.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.