May 1, 2006
SpeculatingStocks.com Stock Pick: Hoku Scientific, Inc. (HOKU)
Stock Price: $6.75 (long-term strong buy)
We first first released HOKU on August 11th of last year at $6.22 as a long-term strong buy. In that stock pick we set a $12.00 target on HOKU and later it hit a high of $13.43 on October 3rd. HOKU is now back down to a great buying point and about to move higher with the rest of the alternative energy sector.
Hoku Scientific, Inc. designs, develops and manufactures membrane electrode assemblies (MEAs) and non-fluorinated membranes for proton exchange membrane (PEM) fuel cells.
HOKU was recently awarded a new contract by Nissan Motor Company. HOKU is developing advanced hydrocarbon-based membranes and MEA's for Nissan's fuel cell cars and trucks.
HOKU is still a small operation generating only $1.72 million in revenue last quarter and a profit of only $202,000. The excitement of the alternative energy sector and HOKU working with big companies like Nissan will drive it higher. HOKU has only 16.33 shares outstanding and even less in the float.
HOKU is beginning to consistently reach higher highs and higher lows.
SpeculatingStocks.com Target Price: We expect HOKU to reach $10.50 within the next 2 - 4 months.