China BAK (CBAK) Soars On Google-Phone Battery Rumor

Shares of China BAK Battery Inc. (NASDAQ: CBAK) are up 39 percent on the rumor that the company will be making the battery for the pending Google Inc. (NASDAQ: GOOG) Nexus One smartphone.

There has been no information from either company to quantify these rumors but mentioning Google in the same breath as a small-cap company is sure to cause a stir.

"These are just rumors and there is nothing to substantiate them at this time," Mark Tobin, analyst for Roth Capital said.

The idea that that Google would give the order to a small company does not compute, but if the rumors have some basis in reality then China BAK shares will continue to soar after a near three month slump for the stock.

More likely the rumors are false, which would make today's run-up unsustainable.

The share value for China BAK has spiked to $3.10 in late market movement Tuesday on the non-confirmed speculation. Shares of Google are down slightly to $621.12 just before the closing bell.

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