Crown ElektroKinetics (NASDAQ: CRKN) does have a couple of nice products which are riding the fashionable wave right now. Of course, that's not enough to guarantee financial success but it's a good start to the idea. The company - or perhaps the tech itself - is a spin out from HP. they can make glass change colour really rapidly. Think like reactolite sunglasses but in mere seconds. One market for this sort of thing is fibreoptics, which as the internet continues to roll out is a nice market. The other is in office and commercial windows - their product there might go to market later this year
OK, and there's this letter to shareholders where the CEO says he's very confident about how things are going to work out. Which is nice, given the 86% loss in the stock price in the last 12 months. Maybe this can be made back then? And so that's the 80% rise yesterday - that public announcement of confidence by the CEO.
Crown ElectroKinetics stock price from NASDAQExcept that's not the only issue here. For there was also an announcement to Edgar (the SEC) about registering stock for potential sale. This isn't a rights issue, or stock issuance by the company. This is a shelf registration (ie, let's do the paperwork now and then maybe, or maybe not, do the thing itself later) to allow current holders of stock to sell if they wish to. More precisely, certain currently restricted stock and warrants will convert to common stock and then that common stock may be sold.
Well, announcing that lots more common stock could come to market is going to have a depressive effect on that stock price. More means less, right?
We would expect the influence of that expression of confidence to wane and the effects of the potential stock issue to increase over the day and following. Unlike the CEO we're not entirely confident but that's the way we expect it will work out.
