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.