Second Wave Petroleum Inc. (TSE:SCS) (PINK:SCSZF) stock price stays with a significant premium as traders await further details on recently disclosed acquisition proposal as well as enjoy the increase in company’s oil and gas reserves.
SCS share price retained the premium from an initial gap up which happened on Tuesday. The trading volume was only slightly lower today, which might limit the rally to some point but still doesn’t raise a red flag.
Technically the price has support around $3.2 per share so its a big win for those who held the stock before the big move and the situation looks safe enough not to call for instant profit taking, thus limiting the possibility of a large correction.
The company disclosed to have gotten an acquisition proposal from an undisclosed suitor. This was stated nearly concurrently with an update on their proved an probable reserves estimates. The company said to have increased those to 10.95 thousand mboe. This is 87% more compared to what was confirmed last year.
The two factor will be influencing the share price until further details on the acquisition proposal hopefully get disclosed. The latest session demonstrated the price action will likely lean towards consolidation but some large price movements could occur because of the tense situation.
