China BAK batteries, a company based not surprisingly in China that makes lithium batteries had recently seen a surge of 63% in it’s share price last Tuesday.

This was mainly due to the speculation that Google had contacted the company to manufacture and supply batteries for the long awaited Nexus one smartphone.

Shortly after the companies shares fell quite substantially when the company denied any existence of a contract between them and Google. The China BAK Battery stock fell by a shocking 22% to just $2.83 after seeing the initial boost of almost 63%.

The company has been suffering losses since it first year of operation and had announced just last month that they will try to break even in 2010, leading some analysts to believe that the company may well become profitable in the near future. Source – itproportal.com