During the last session, more than 2.3M shares changed hands in the intriguing battle between sellers and buyers. In the end, it was won by the latter, so CRI managed to rise by 2.56% closing at $0.80. The price is currently not far from its all-time peak of $0.95 set in early April.
The true hero of the day, as we said, was the volume. Monday’s turnover is a six-month high and represents a record in the company’s trading activity in 2011. What might have driven such a large volume spike and such untypically huge investor interest in Castle’s shares?
As there are no newly released company developments, one must search for other clues that would explain the stir of the stock. Speculative motives are among the probable reasons for the volume surge. Another possibility – perhaps, some traders are awaiting big company news to come out any minute.
However, this has not happened by far and nobody can promise it will happen at all. We are simply guessing. Castle has not provided us with enough information, nor has it found it necessary to issue a special announcement to explain the present shares’ performance on the stock markets.
Otherwise, the company is without major financial worries. In the end of 2010, it had a cash position of almost $4M and a working capital of $4.6M. This does not account for the $12M financing completed in late February. Some twenty days ago, Castle informed about its intention to start in mid-May a 30,000 metre drilling program on its Granduc Copper Project.
Maybe, the drilling has already begun, as announced and according to plan. This looks as another highly probable reason for the present stock performance.
We cannot be sure about the trouble-free future of Castle until it reaches the production phase. In the latest company presentation people will read that this is expected to happen no sooner than 2014.
