RMS Systems, Inc. (CVE:RMS) (PINK:RMSSF) recorded an outstanding stock price gain on Tuesday, but didn’t have anything material to provoke a further price rally.
RMS spiked up 20.5% yesterday carrying a trading volume of 1.4 million. Most of the action was concentrated at the end of the day as the price went up in rapid manner, suggesting it might have been based on short squeezes.
There was no news release or anything of the kind. The last news from the company came out last week. On September 15 RMS published an operations update which looked rather promising but didn’t cause much reaction on the market.
RMS now has equipment installed on 28 rigs in Canada and 2 in the US and holds a contract to install their system on additional 10 rigs before winter season. The company has also completed the 1st phase of field testing for its autodriller system and plans to install 4 systems for phase 2 testing, commencing in about a week from now.
The autodriller system will roll out in Canada and the US before year end if these tests are successful. In such case the company expects to have their equipment installed on 60 rigs by the end of 2011.
The autodriller system is created to provide a constant weight on the drill bit as the well is drilled. This is an additional product in their business of web-based remote drilling data retrieval software solution.
