Of course, any company with a low float of shares is susceptible to large percentage moves on big volume. Encorium has only 3.3 million shares outstanding and a float of only 2.1 million. The volume in Encorium shares over the past week raises more eyebrows. More than 2.3 million shares traded Wednesday when the stock began to pop, followed by 4 million in volume Thursday and 5.1 million on Friday when Encorium topped $6 on a split-adjusted basis for the first time in six months.
Internet message boards are littered with similar questions about the move last week in Encorium shares. "Very suspicious," one trader posted on Friday, while another argued that the stock is "pumped up right now on a crap shoot."
Other bullish investors noted that the trend is up and that Encorium could surprise with a strong earnings report following the delay.
Perhaps one trader posting on Twitter said it best when talking about Encorium: "This market is quickly becoming the countries biggest form of legalized gambling."-- Written by Robert Holmes in Boston. Check out all of the week's high-volume, under-$5 stocks at the Dollar Store. View the Dollar Store portfolio on StockPickr. Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV