NEW YORK (TheStreet) -- Synthesis Energy Systems (SYMX) spiked to a one-year high of $2.49 as of 10:30 a.m. Friday after the company announced that its wholly owned subsidiary, SES Asia Technologies, had entered into a joint venture that would fortify its position in the clean coal gasification market in China.
Synthesis announced that SES Asia had entered into a definitive agreement with Zhangjiagang Chemical Machinery to form a joint venture called ZCM-SES Sino-U.S. Clean Energy Technologies. ZCM will contribute approximately $16.5 million to the venture for a 65% ownership interest, while SES will contribute exclusive usage of its advanced, proprietary gasification technology in Indonesia, Malaysia, Mongolia, the Philippines and Vietnam for a 35% ownership interest.
Synthesis shares skyrocketed in early morning trading on Friday and had a volume of more than 6 million shares by 10:45 a.m., compared to its average of 314,108.
TheStreet Ratings team rates SYNTHESIS ENERGY SYSTEMS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SYNTHESIS ENERGY SYSTEMS INC (SYMX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself."