Cobalt Coal Corp. (CVE:CBT) (PINK:CCCXF) added 80% today after the company said an important coal cutting machine was finally repaired.
Stock price went up on a spectacular trading volume of 7.3 million, which was 12 times the average of 606 thousand.
CBT spiked after the company said the machine that had malfunctioned earlier this month is back on production. The breakdown of a continuous miner has been reported on May 18, 2011, causing a slight disturbance on the stock market and adding to the negative sentiment created by the earlier announcement of annual operating results.
The coal cutting machine, that is one of the significant assets on Westchester mine, has been repaired and continues operating since May 23.
The news helped CBT stock to partially recover from earlier loses, incurred upon announcement of worsened operating results. Annual results, published in the beginning of May, had sent the price down around 70% over the course of couple days.
A full recovery should not be expected though, because the fundamental situation remains impaired and the current news merely stated the company is back to their normal operating mode.
From a technical point of view, the price has a significant resistance at 6 cents – the level was tested today as well, strengthening it further.
