Shares of Crown ElectroKinetics (NASDAQ:CRKN) stock are rocking higher on Wednesday, more than doubling on the day. At last glance, CRKN stock was up 120% on the session. Crown ElectroKinetics is “a leading smart glass technology company and an expert in both designing and installing distributed antenna systems ( ) and constructing fiber optic networks, has released a letter to its shareholders.”
This rally comes after a recent shareholder letter made the rounds. Specifically, the letter provided a bullish update to the company’s business and hinted at optimism for its upcoming earnings. The firm said it is looking forward to the “mid-May earnings call in just a few weeks.”
Per the letter:
“Our market potential continues to grow, with few, if any, comparable solutions, supported by legislative tailwinds like the recently announced Inflation Reduction Act that expands the tax incentives for retrofit energy improvements […] On the Crown Fiber Optics front […] we have executed two new agreements with large communication infrastructure providers, with more expected shortly.”
Lastly, the company also noted that the “macro tailwinds” for its fiber optics division “are strong as the effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities” for the industry.
Those are some of the main talking points from the letter and, given the update, it’s not hard to see why CRKN stock is surging on the day.
A Closer Look at CRKN Stock
At its session high, CRKN stock climbed up by 230%. Of course, these types of gains are much easier to garner when a company’s market capitalization is below $10 million, as is the case with CRKN stock. Today’s action also doesn’t erase the longer-term pain in this name.
Before this week, CRKN had declined for 11-straight weeks. The stock has also declined for the past eight quarters. There’s no other way to put it: There has been a brutal long-term and intermediate-term trend for shareholders despite today’s pop.
Prior to Wednesday’s session, shares were down more than 50% so far in 2023. When we go back over the past 12 months, the losses are even more staggering. Shares are down over 80% even when including today’s climb.
Going forward, the next most obvious catalyst to watch is earnings. Management set the tone. Now they’ll have to deliver.
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On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.