VHGI Holdings, Inc. (PINK:VHGI) closed the last trading session for 2011 on a high note, only to get pumped for the opening day of the stock market for 2012. Will 2012 become VHGI’s year since its stock has been on an upward trend for the last six weeks?
To a large extent, a continuation of the trend will be dependent upon the company’s ability to turn its plans into action. What is at the core of its plans now is the bringing of the soon-to-be acquired coal mine to full production. Based in Indiana, the mine stretches across an area of 2,800 acres and has been verified to contain substantial coal reserves. Although the transaction for its acquisition has yet to be completed, VHGI claims to have already invested a fortune on building the infrastructure that is required for the expansion of the mine’s capacity.
All these bits and pieces of news seem to be appealing to penny stock traders as VHGI stock has enjoyed increased investor interest since mid-November. Last Friday, in particular, VHGI went up 34% to a six-month high of $0.51 per share. A total of 190 thousand shares changed hands and there were even no news whatsoever. Obviously, third parties are now willing to benefit from this tidal wave, which is why they spent $10 thousand on a paid advertising campaign in favour of VHGI stock for the upcoming market session.
As seen on VHGI’s latest quarterly report, the company’s financial state is by far not what its most avid supporters would like it to be. Unless the company manages to fix it, 2012 will hardly turn into VHGI’s year.
