The managers of BSM Technologies Inc. (CVE:GPS), (PINK:BSMZF) decided not to lose the tempo they gained a week ago. As you probably know from an earlier article, last Thursday the company informed to have been awarded a $1.1M contract.
Yesterday, the public was glad to learn that BSM signed other deals, totaling $1.2M in value, with two major institutions which organize snowmobiling in Canada. In compliance with the agreements, BSM’s Sentinel FM asset tracking solution will be installed on 810 trail grooming machines.
On the TSX Venture Exchange, the reaction to the news was evident enough. Yesterday, the stock ended the session at $0.04 – 14% higher than the previous close. It was the trading volume that made the bigger impression. The 5.45M shares traded surpass 12 times the average turnover.
The company is obviously trying to impress investors and has succeeded in doing so, to a certain extent. If the contracts keep coming that often, then BSM will probably manage to go further up on the stock markets.
On the other hand, this could also not happen. Over the last three weeks, the shares have been unable to close higher than $0.04. In early February, before the above-mentioned contracts were announced, GPS was traded better – at $0.055.
Clearly, the stock cannot even pull back to its February levels, despite the positive news. Perhaps, this is partly due to the company’s financial state that might have been more solid than it looks. Besides, BSM seems overvalued on the market, judging by its current market value.
Nevertheless, some technical indicators, such as MACD bullish cross-over, suggest that the shares might continue to rise in the future. However, without confirmation, there is no guarantee this is really going to happen.
