As part of a general portfolio cleanup, I recently considered selling my stake in UQM Technologies, Inc. (AMEX:UQM), a manufacturer of electric motors for hybrid and electric vehicles. I chose to keep the stock because they seem 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.
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