MENOMONEE FALLS, Wis. (
shares climbed nearly 10% Tuesday on above-average volume after the company announced it received an $11 million order for its wind power inverters.
Magnetek said it received a follow-on production order for wind power inverters valued at $11 million. Magnetek's E-Force Wind Inverters are to be delivered to its customer beginning in December 2009 through November 2010.
Magnetek said its modular utility-scale wind power inverters regulate and transform DC power generated by wind turbines into utility-grade AC power, which is distributed to the power transmission grid.
Magnetek shares were rising 14 cents, or 9.2%, to $1.67. Earlier, the stock touched an intraday high of $2.01. More than 120,000 shares changed hands in the first hour of trading Tuesday, compared to the stock's three-month average daily volume of 92,000, according to Yahoo! Finance.
Magnetek has a 26.5 million-share float with a small short interest float of only 0.2% as of Sept. 10, according to Yahoo! Finance. More than 15% of the company's shares are held by insiders and another 58% is held by institutions.
Investor posts on Internet message boards indicated that Tuesday's rise was a bullish test for the stock and may shake out long investors. Other investors wrote that it was about time Magnetek received a follow-up order on wind inverters, which could hopefully kick start more.
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-- Written by Robert Holmes in New York