In the course of about a week, Digital Power Corporation (NYSE: DPW) has ridden the crest of a wave and settled back down into a groove, neither moving significantly up or down. In the latest trading the stock has continued to inch higher, though not on any significant recent news. There was some news but this largely was priced in when it broke. So what led to the recent uptick for DPW on Wednesday?

The answer to that seems to be a responding not much given the actual numbers that were produced in the last session. DPW opened at 0.65 on Wednesday, then it rallied to a high of 0.73 before dipping below the open at 0.63, before recovering somewhat to close the day trading up 7% or at 0.69. perhaps the biggest factor in the day was the sharp increase in volume which saw DPW rise to around 1.45M shares changing hands, compared to the 500K or so average trading volume which has prevailed for the stock over the last 30 days.

To see when DPW was printing this sort of high both on the volume side and the valuation side, one has to cast one’s eyes back to August 4 when the stock closed up big, finishing at nearly 135 on the day. The news then was a big announcement that DPW, a growth company seeking to increase revenues through acquisitions and organic growth, completed the formation of Coolisys Technologies, Inc., a newly-formed technology-centric holding company dedicated to servicing the defense and aerospace sectors as well as industrial and medical based businesses worldwide. Investors were clearly happy on the day as the stock posted both huge volume and a price surge.

The big question is whether DPW can continue its minute, but steady moves forward. Odds are it can; especially given the fact that the stock has trending up long term with a DMA 200 which is up 9%.