Yesterday, the former World Marketing, Inc., named Royal Energy Resources, Inc. (OTC:ROYE) now, with no special marketing approach, with a simple press release about business plans of its neighbors, succeeded to produce if not oil, but a massive explosion of its share price.
Reasonably, not only the company’s neighbors were fascinated, but even investors that had never heard about ROYE. After the 340% share price eruption, they were asking the question, how this miracle happened?
Opposite to usual beliefs that the fall of shorters’ stronghold was the main reason for the stock rush yesterday, statistics present a modest shorters’ interest towards ROYE. Only 34% of the total volume traded belonged to them.
Then, the above fascinated neighbors and investor went further to look for details and more information about the company Royal Energy Resources, Inc. and its winning stock.
Maybe, they realized that the company has a long and really intriguing history.
ROYE was founded in 1999 with intentions to start a web-based marketing business for health-care products. At the beginning of this century because the business had no revenues it was discontinued.
The company was inactive until 2005. This was the time, when ROYE jumped from the health-care to the new real estate business.
Only one year later, Royal Energy Resources, Inc. embarked on a golden river of acquiring oil and gas and uranium leases. According to the last official company’s disclosures, ROYE invested in three oil & gas drilling prospects in Washington County, Oklahoma. Two of its wells began initial sales more than two years ago. Unfortunately, as stated by ROYE, since “all workover attempts were unsuccessful and the properties were abandoned during fiscal 2010.”[BANNER]
For reassurance of investor with short positions and to the attention of those with long positions, all proven properties of Royal Energy Resources, Inc. were sold effective October 1, 2010.
Based on all above facts and the recent company’s announcement with a reference to a neighboring company it is not difficult to say, that maybe, only neighbors’ plans were able to detonate the price of shares yesterday.
Considering financial statements of ROYE, with their small losses and debts, it looks like ROYE may be in the nearest future a good opportunity for an investor to count on for a high ROI (return on investment).
As known, the highest rate of return is always related with higher risk and maybe, with short terms perspective of the investment, in the case of ROYE.
