Is XsunX (XSNX) Being Manipulated?

Hans Deuel at Clearfish Research presents some very good concerns about the possible manipulation of the shares of XSUNX Inc. (XSNX).

I’ve received a number of comments about XsunX, all from the same person. I decided to look into them. They are working on transparent solar cells, have a weird history, and a weird structure. The only technological information I can find on them is all paid advertising (from IPODesktop and others) masquerading as research. Each of their press releases are misleading. They offer one key statement, and then go on about intentions. For example, the latest one has the phrase “…has begun the construction of a mass production system…”. That seems to imply, and is likely intended to give the impression, that commercialization and mass production is around the corner. But all that it really says is that they broke ground on a new building or something. They made some statements in 2004 about technological developments (4% conversion efficiency), but nothing technological since then. By the way, what they claim to mean by “4% efficiency” is “4…Watts of direct current…per square foot of PowerGlass film” [here, page 5], which is not the definition of efficiency, which is always a measure of power out versus power in. [ more ]

If you are a current investor in XSUNX you would be well served to read Han’s blog entry and consider his research as part of your buy/hold/sell decisions about this company. Back on November 11th I purchased shares of XSUNX for my personal portfolio. At that time I wrote the following entry.

XsunX is a development stage company that I have profiled in the past. Since I started following this company I have seen many other people pick up on their story as well. This stock is a penny stock and we will not see some serious stock appreciation until they finish the development of Power Glass. You should consider this one highly risky if you want to add it to your own portfolio. I see the purchase of this stock as a nice gamble for a long term hold. The big win is once they finish development of Power Glass and either go into production or are acquired by a larger company. I don’t see this happening for several years. [ more ]

As I said when I purchased shares, this company (and stock) is highly risky. Penny stocks have a habit of going bad quickly so you need to be careful. Since then my holdings are now up over 500%. I sold half of my holdings at the 200% gain mark so right now all I have left in this company is the house money. I was fully expecting this stock to be dead money until they start producing some products. However, the stock has been moving steadily higher on the promise of what is to come. As Hans states, this is risky territory. I will continue to hold for now.