NEW YORK (TheStreet) -- Shares of SinoCoking Coal and Coke Chemical Industries (SCOK) exploded more than 180% to a 52-week high of $8.43 in morning trading Tuesday after the company announced a new underground coal gasification project.
The company, which produces clean energy such as clean-burning synthetic gas, signed an agreement with both the Institute of Process Engineering of the Chinese Academy of Sciences and the North China Institute of Science and Technology. SinoCoking will refine and implement technology to convert the 21 million tons of coal at four SinoCoking underground mines into the clean-burning fuel syngas.
The project will begin next month.
The technology will convert the coal "without releasing meaningful levels of carbon dioxide or other greenhouse gases above ground," SinoCoking said.
More than 10 million shares had changed hands as of 10:57 a.m., which eclipsed the average volume of 291,125.
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."