NEW YORK (TheStreet) -- SinoCoking Coal and Coke Chemical Industries (SCOK) surged Monday after the company announced it would shift its focus to large-scale production of clean energy, such as clean-burning synthetic gas.
The company is building a green facility to convert carbon dioxide into synthetic gas, or syngas, a fuel that produces clean energy and numerous types of fertilizers, solvents and other industrial products. The company said in a statement the facility should become operational in the fourth quarter and would produce as much as 25,000 cubic meters of syngas per hour, which would rank it among the highest outputs in China.
To reflect this change, SinoCoking plans to change its name to Clean Synthetic Technologies Corp.
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"Clean Synthetic Technologies is more than just a new name. It is a new identity," said Chairman and CEO Jianhua Lv.
The stock was up 19.23% to $1.86 at 12:12 p.m. More than 1 million shares had changed hands, compared to the average volume of 106,005.
Separately, TheStreet Ratings team rates SINOCOKING COAL & COKE CHEM as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SINOCOKING COAL & COKE CHEM (SCOK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."