NEW YORK (TheStreet) -- Shares of Clean Diesel Technologies (CDTI) were gaining 26.5% to $2.34 on heavy trading volume Tuesday after the emission control technology company released preliminary results for its new synergized-platinum group metal (SPGM) diesel oxidation catalyst (DOC) technology.
In its initial tests, CDTi said its new technology achieved emission control and system performance comparable to a leading OEM catalyst while reducing PGM usage by over 80%.
The company said the technology represents "another breakthrough" in its research program aimed at reducing or eliminating the need for PGMs in emission control catalysts. The company plans to commercialize its SPGM DOC technology through OEMs and retrofit catalyst suppliers through its powder-to-coat business model.
"These initial engine and vehicle tests for our SPGM DOC technology are the first in a series of key development milestones," CDTi President and CEO Chris Harris said in a statement. "They further demonstrate our ability to invent innovative materials to create significant value propositions in a range of downstream markets."
About 4.5 million shares of CDTi were traded by 11:49 a.m. Tuesday, above the company's average trading volume of about 152,000 shares a day.
TheStreet Ratings team rates CLEAN DIESEL TECHNOLOGIES as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEAN DIESEL TECHNOLOGIES (CDTI) a SELL. This is driven by multiple weaknesses, 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 generally high debt management risk, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."