Monexa Technologies Corp (CVE:MXA) is yet another stock that pulled off superb performance in Friday’s trading session, but had no news associated with the move.Monexa’s management addressed the 100% increase in price, stating there was no material reason for the move to occur. Trading volume also topped 4.4 million and was nearly 52 times the average.
Since there was a preceding downtrend in play, a major part of this volume could have come from short squeezes. This artificial increase has no merit to hold and we will likely see a gradual decline over the coming week, with a possibility of a sharp drop on Monday.
Such speculations are based on historical price action. MXA price touched the 12 cents area back in January and tanked heavily afterwards. That is the only reference traders currently have when evaluating the recent price activity. The suggested outcome isn’t very attractive as well – shares are traded scarcely and can be very hard to borrow for short selling.
The market cap is at $3.5 million when the share price is 10 cents, which is hardly adequate considering the company holds a $1.7 million capital deficit and incurs constant losses from operations. The underlying financial fundamentals have even more value at this time, since the price went up at random, without any material changes present.
