Converted Organics climbs despite lack of news
Converted Organics Inc. (Nasdaq: COIN) shares climbed in Monday’s trading despite no significant news from the Boston-based company, a maker of fertilizer produced from recycled food wastes.
Investors on Yahoo message boards speculated that the price increase was due to large institutional firms buying shares, the opening of a New Jersey-based fertilizer plant or investors trading on a “cup and handle” stock chart pattern. The pattern, pioneered by Investor’s Business Daily founder William O’Neil in his 1988 book “How to Make Money in Stocks,” is considered a bullish indicator by some investors.
The stock took a wild swing in mid-January after a CNBC guest mentioned Converted Organics. Even though on-air guest mentioned but did not recommend the stock, the broadcast sparked a surge of more than 60%, which was shortly followed by a rapid sell-off in the subsequent trading days.
In Monday’s trading, COIN shares rose 15.16%, or $1.94, at $14.74. Over the last 52 weeks, shares have ranged from $2.25 to $14.85.
