Passport Potash Inc. (CVE:PPI) (PINK:PPRTF) started to correct back down after the stock had a mysterious spike in share price one day after the company announced admission of new member to directors and advisory boards.
PPI advanced 25% on Wednesday on a trading volume of 3.3 million, which was 4 times the average of 808 thousand. It was the first significant spike over the past month, when the stock had reached the floor and just consolidated at support.
The company announced changes to the board of directors a day before the spike. John Eckersle was a appointed as a new member. He also serves as the vice president for legal and corporate affairs of the company since December 2010. In addition Ali Rahimtula was appointed to the advisory board of Potash. He expertise in fertilizer industry.
This likely wasn’t the direct cause for the spike, which is more likely to have been a short squeeze. Because of the predominant downtrend many were viewing this as a shorting opportunity, and a slight breakout lead to the current situation.
Bears are taking over once again though. The price lost 8% shortly after opening today, but will likely take a its time to drop back to 57-60 cents range.
