Power Solutions Doubles On Massive Volume

Power Solutions International Inc PSIX shares are trading higher by $3.77 (78 percent) at $7.57 in Thursday's session. The most relevant news on the issue was from Wednesday, when an SEC filing revealed a new 7 percent stake by Elk Creek Partners LLC.

Most likely, that announcement ignited a short-covering rally that may still be underway. After all, the thinly-traded issue has a short float nearly half the shares outstanding at 40 percent. Based on its low average daily volume, that implies a staggering short interest ratio of 25.8 days to cover.

After a higher open, it retreated only a dime to $4.15 before continuing its move higher. So far, the ensuing rally reached $7.85, but has backed off from that elevated level. That high comes in above its January 20 high ($7.65), but shy of its January 19 high ($7.98).

With two hours remaining in the session, 3.1 million shares have changed hands compared to its 20-day average volume of only 443,000.