Slam Exploration Ltd. (CVE:SXL) (PINK:SLMXF) stock price is holding at the last strong support, and yet traders remain generally uninterested at this point.
Stock price was slammed against the support at 13 cents, following the prevailing downtrend, but further commitment remains questionable. The trading volume was very low in the past few days, roughly only at half of the 90 day average of 1.25 million.
Despite the presence of strong downtrends, some analysts remain fairly positive about the company and even had upgraded the stock to “BUY” in February. Such a position is mostly supported by frequent Slam updates on operations and drilling discoveries.
The recent news, published on April 15, 2011, however failed to move the share price up, and just halted the downtrend for a bit. Back then the company announced results for all the drill holes done in 2011 at Reserve Creek gold project in Ontario. With mineralization values ranging from 1.32 to 18.33 g/t in 15 holes, those were pretty solid and promising results, which supported the previously discussed position of analysts.
Every share price rally until now was triggered by simple updates or advertising efforts. However the nature of their short term effects is very clear at this point, and it mostly related to the unclear financial situation of Slam. The company completed $4.7 million worth of financings over the past half a year, but they haven’t yet filed audited financial reports to show the use of these funds.
