Azabache Energy Inc. (CVE:AZA) (PINK:AZBCF) stock price might be overextending in reaction to the recently published financial results, but it just keeps going up.
AZA stock price jumped 17.9% on Friday extending the price rally which is observed since the beginning of the month. The trading session also had an extraordinary trading volume which topped 2.2 million and was ten times the average of 216 thousand.
AZA price broke above the downtrend line and added to the recent turn up of the 50-day moving average. It appears the price might challenge its 52-week high of 70 cents per share as it’s still going up inspired by recently published financial statements.
On October 28 the company filed their annual fillings for the period ended June 30, 2011. In their filings, the company demonstrated substantially decreased losses and strong cash position of $19.2 million. Of course, the cash was raised by issuing capital stock, which in turn hurt long-term investors, but apparently it doesn’t bother short-term traders.
Still, the stock price isn’t very likely to reach a new yearly high under the current rally. Their market capitalization at $75.7 million is already more than twice the underlying book value. That is more than traders usually attribute to exploration stage companies with no revenues.
