Shares of Sunworks (NASDAQ:SUNW) continued their sharp rise on Thursday, climbing as much as 33.8%. Shares fell back slightly as the day wore on, but at 2:30 p.m. EDT, they were still up 24.8% on the day.
There wasn't any news about Sunworks today, and no unexpected policies were put in place by the new Biden administration. So this is just continued momentum in the hot solar energy sector right now.
After nearly running out of cash last year, the company has a new lease on life after selling $20 million in stock in December and paying off a $2.7 million loan. Sunworks intends to use its improved balance sheet to drive growth.
The biggest problem for Sunworks is that it isn't even close to making money. Revenue in the first nine months of 2020 was just $29.3 million and losses were $11.1 million, or $0.75 per share. Those trends look like they'll continue, and with bigger, more established solar stocks available, this isn't a gamble I would be taking today.