Strength in Euro Tech's shares was attributed to a rumor the company may consider an initial public offering for its Chinese water division, according to Briefing.com. Investors posting on Internet message boards argued that the surge in shares was part of pumping and dumping by momentum players.
Shares of Euro Tech were jumping by 54 cents, or 20%, to $3.25. Earlier in the session, the stock touched an intraday high of $3.72. More than 1.9 million shares changed hands by 11:15 a.m. EST Monday, compared to the stock's 50-day average daily volume of 252,000, according to the Nasdaq.
Euro Tech has a 6.4 million-share float with 17,000 shares short as of Nov. 13, according to Yahoo! Finance. Insiders hold 50% of the company's shares, with another 1.5% owned by institutions.-- Written by Robert Holmes in New York. Check out all of Monday's high-volume, under-$5 stocks at the Dollar Store Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.