NEW YORK (TheStreet) -- Synthesis Energy Systems (SYMX) spiked 23.12% to $2.13 at 9:51 a.m. on Wednesday after the company announced that its wholly-owned subsidiary, SES Asia Technologies, and Zhangjiagang Chemical Machinery had received a 20-year business license from the Chinese government for their joint venture, ZCM-SES Sino-U.S. Clean Energy Technologies.
"Along with our joint venture partner, ZCM, we are pleased to be proceeding smoothly with China government approvals," said SES President and CEO Robert Rigdon in a statement. "ZCM has already been working diligently on securing the first orders for ZCM-SES, and we have been working in parallel to ensure a seamless transition of our Shanghai team into the new joint venture. A ZCM-SES general manager has been selected, and will be named after an upcoming meeting of the JV's Board of Directors."
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 some concerns, 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. Among the areas we feel are negative, one of the most important has been poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: