I’ve written about this so many times before and this is perhaps one of the worst examples of a misleading headline.  Do a search for GRH and you’ll see one headline saying that GreenHunter Energy (GRH) turns to a profit.  Perhaps (I haven’t located the benefit of the one time events the company refers to in its press release) but take a look at the revenue number.  They reported $1.7 million in revenue which is very good for GRH.  Ah, but take a look at the headline EPS number of .13/share.  It calculates to $4.45 million!  I’d say that’s quite a one  time gain that doesn’t reflect the true financial condition of the company.  Nonetheless, traders are bidding the stock up this morning and it’s currently trading up 43% with heavy volume.  A great trading stock, but I’d certainly be careful holding this one over the longer haul.

Here’s a comment from the CEO:

“Our Company has been in survival mode since late last year after the hurricane strike on our largest asset, our Houston biodiesel refinery, and the subsequent collapse of the financial markets. The renewable sector was especially hurt by the unprecedented decline in fossil fuel prices which resulted in similar declines in the price of our finished product, biodiesel. We feel that we are methodically working through our very tight capital issues with a specific game plan that should allow for future opportunities within the renewable space. Our ability to negotiate the final settlement of substantial insurance claims as well as sell and monetize certain non-core assets has to-date provided sufficient working capital to keep our Company viable.”

Perhaps traders are bidding up the stock on that final statement.