3P International Energy Corp (CVE:DOH) (PINK:TPNEF) was unable to break out last week but had successfully built the tension for a couple of days.
DOH jumped up 17% on Wednesday but concluded the week without a breakout. The stock still had a second heaviest trading day of the past couple years. The trading volume was more than 8 times the average of 290 thousand.
Such an increase in trading activity could lead to important price developments. DOH valuation is holding near the top of the current price channel and it only lacks a proper catalyst to burst out. The stock has been stuck in price consolidation for the past three months, swinging roughly between 37 and 50 cents.
The upper value was imposed by a recent disclosure. On Sep 14 the company announced that 1 million stock options have been granted to officers and consultants that have worked to complete the JSC Tysagaz acquisition. The options were granted on Sep 9. They can be exercised at 50 cents per share over a period of two years.
Natural the price on the open market moved up as well since the options basically stated that the current valuation appears too low from management’s point of view.
