One of today’s biggest movers is Electriq Power (NYSE:ELIQ). Indeed, any stock that doubles in a given day is likely to lead the market in terms of gains. Such is the case with ELIQ stock, which is currently up more than 80% at the time of this writing — and was up more than 100% at one point today.
This move appears to be driven by outsized investor interest in the little-known intelligent energy storage and solutions company, due to a $20 million stake taken by Jel Partnership. This investment was disclosed via a 13G filing this week, spurring interest in the company from other investors who may be pondering what the big deal is with ELIQ stock.
Let’s dive into what Electriq does — and why this deal is garnering so much attention.
ELIQ Stock Surges Higher on Significant Investment
For most companies, a $20 million investment isn’t something to really write home about. However, given the fact that Electriq’s market capitalization as of yesterday was around $65 million, that’s a big deal. This investment certainly signals that smart money investors may know something the market doesn’t. That alone is intriguing enough for many investors to get their calculators out and start to model out what this company’s potential might be.
Energy storage and battery backup solutions certainly do represent a future growth market worth considering. Electriq’s lineup, which includes a smart home battery backup system, enables small- and medium-sized businesses as well as larger clientele to chart their path toward sustainability and off-the-grid energy solutions.
Whether or not this equity investment will provide the company with the capital and support to take its business to the next level remains to be seen. That said, investors are clearly piling into ELIQ stock today, with perhaps some of the move driven by pure momentum alone.
This stock is one I’m going to let the dust settle on. However, I have put Electriq on my watch list for now. ELIQ will certainly be an interesting small cap name to follow from here and see whether it can hold these gains.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald 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.
