Power Solutions International Inc (NASDAQ: PSIX)
Power Solutions International was off to what seemed like a relatively normal day in the market early on today. For the first few minutes the market was open, the stock was in the green and trading relatively flat. However, minutes ago, we started to see a massive spike in the downward direction. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to PSIX ahead.
What We're Seeing From PSIX
As mentioned above, Power Solutions International isn't having the best of days in the market today. For the first few minutes of trading, it looked like things were going well. The stock was slightly in the green and starting the day on a good note. However, minutes ago, the stock started spiking downward. At the moment (9:46), PSIX is trading at $7.19 per share after a loss of $1.09 per share (13.16%) thus far today.
Why The Stock Is Falling
As is normally the case, our partners at Trade Ideas were the first to alert us to the run on PSIX. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it took some digging. While we didn't find any fundamental news released by the company, we did find an interesting rumor in the social space.
At the moment, if you search for Power Solutions International on your favorite social network, chances are that you will come across the rumor as well. The rumor is that the company is under SEC investigation. Unfortunately, the what, why, and how aren't available, as is usually the case with rumors. Nonetheless, if this one is true, it could be damning for PSIX.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on PSIX. In particular, we'll be watching to see if there is any validity to these rumors. After all, an SEC investigation is never good. We'll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Pixabay]