Last Friday, Juhl Wind, Inc. (OTC:JUHL)
got the climb and this week it continues to move up progressively. Yesterday, the
stock added another 6% to its price and managed to trade over 21 thousand shares on the market.
The most reasonable explanation on the gain appears to be the latest news by Juhl Wind. The company has just reported the recent startup of construction on the GL Wind LLC wind power system for Gunderson Lutheran Hospital. The announcement states that JUHL serves as a developer and construction manager for the community wind farm estimated to cost approximately $10 million.
Despite being optimistic enough, Juhl Wind took another step to ensure the climb. This time by promotions.
Along with the news reported yesterday, JUHL was promoted for a compensation of $10.000, paid by Hanover Financial Services. Apparently, the company wants to secure its chart position before the up move gets broken.
Juhl Wind engages in Community Based Wind Power development and management, focused on wind farm projects throughout the US and Canada. At first sight, the company's unaudited 10-Q report looks pretty good. Though, the second glance makes the situation different.
Despite its improved cash position, total liabilities of JUHL are higher than its assets, and some of them are long-term. Also, the operating loss has notably increased, while the accumulated deficit exceeded $15 million until June 30 this year.
Apart from the losses, it turns out that Juhl Wind operates mainly on credit lines and it is uncertain how the company will repay them.