" I am sure you noticed in the ER that sales were up 19.5% and lithium battery net sales were up 44.7%. HPJ became an approved supplier for Philips from Europe and SONY from Asia and they began shipping product from the new Huizhou facility. So my original thesis for investing in HPJ is still in tact. On the EPS, half the loss was stock based expenses, and the rest appears to be due to investment to leverage the lithium product line, the new solar energy storage systems, and the battery recycle business. The company would likely have been criticized if it had not invested in these growth businesses.
It appears that the net loss was a "zinger" to the market as the stock did drop dramatically on the release date. However, as you noticed today volume was extremely weak and for a small company like this it leads to volatility."
- Michael Fitzsimmons, Seeking Alpha