UQM Technologies: Rumors Behind Sharp Increase, and Possible Plummet

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 |  About: UQM Technologies, Inc (UQM)
by: Tom Konrad, CFA

As part of a general portfolio cleanup, I recently considered selling my stake in UQM Technologies, Inc. (NYSEMKT:UQM), a  manufacturer of electric motors for hybrid and electric vehicles.  I chose to keep the stock because the company seems to have sufficient cash on hand to fund several years' operations.  I'm glad I did, because the stock is up 76% since Monday, with no recent news.

But there's a rumor that Chrysler will be using a UQM product in one of its planned electric cars.  If that rumor is true, the stock's rise is probably justified.  I like the company either way, but don't expect all the gains to hold if the rumor turns out to be false.

DISCLOSURE: Tom Konrad owns UQM.