why is this shooting up.

As I bought into this today I thought I ought to try to justify the decision, apart from the actual reason of buying on the momentum.

No doubt there are a miriad of possible reasons that are unknown to all but insiders, but looking at the half yearly report released 30.11.06 one possibility is a resolution of the Max Power (MPI) debt.

SCE sold the transformer business (AAI) to MPI earlier last year. MPI were supposed to raise the purchase cost from an ipo. This didn't eventuate and as a result MPI still owe $23.3m to SCE.

Tucked away on the very last page of the half yearly in the auditor's opinion is the note "The directors of SunTech have confirmed that corporate activites are being undertaken to receive the amounts or for the return of AAI..."

SCE has 400m shares on issue. They are very tightly held with the top 20 accounting for 81.5%, according to the annual report.

If the company managed to get that $23.3m it would represent 5.8c per share. Also, they have made a provision of $4.5m against it. Full recovery would allow them to write this back, increasing tangible assets by 1.1c per share.

This is speculation and may be wide of the mark. Maybe a buyer has simply scooped up a few million of these tightly held shares at what they consider bargain prices.

Regardless, I don't believe the sp activity of the last week or so is due to traders looking for a quick buck. This is not a trader's stock (with the exception of Budfox and perhaps a handful of others at the most).

Time will tell, but I just thought I'd give one possible explanation.

cosmos