It seems that nothing can stop the surge of Transeuro Energy Corp. shares (CVE:TSU), (PINK:TSUAF) these days. The stock continues to advance, looking stronger than ever. Yesterday, the ferocious buying launched TSU into yet another higher trading range on the Toronto Venture Exchange (CVE).
The shares noted a 2-year price record at $0.185 on a tremendous turnover exceeding nine times the average for the company. Within a week, TSU has added over 54% to its value. Last session it also took the honourable fourth place among the most traded items on the CVE market.
The run-up was even more noticeable on the American OTC market, where TSUAF jumped up by 45% and deposited its new yearly high of $0.1824 per share.
The glorious march of the stock probably results from several recent news from the company. A week ago, Transeuro announced the start of the drilling operations on its Ukrainian Karl-101 project and on Tuesday in another regular update the company informed about completing successfully part of its drilling program on the property.
Maybe this triggered the current surge of the shares. Besides, just before New Year the company disclosed the full subscription of a $2M non-brokered private placement.
These measures will allow Transeuro to generate additional capital, which it surely needs as the financial statements show. The filed financial reports reveal a net loss of $6.3M for the nine months ended Sep. 30, 2010 against a net income of $16.4M for the corresponding period in 2009.
The company has numerous projects in Canada, Ukraine, Armenia and Papua New Guinea and they all need further financing. This is difficult to be accomplished with a declared negative working capital balance of $2.32M.
The future change in the share price is difficult to guess, though some technical indicators suggest that TSU could enter the overbought area.
