Aroway_Energy_-_Chart_-_27_09_2011.pngYesterday, investors witnessed another hot session for the shares of Aroway Energy Inc. (CVE:ARW), (PINK:ARWJF) on the TSX Venture Exchange (CVE). The stock produced a long white opening Marubozu, together with a volume spike.

No new annoncements were released by the corporation. In such a case, we should search for other reasons that might be responsible for the recent performance of the company’s shares.

A large and interesting discussion concerning Aroway Energy is going on in the stock forums. Most of the opinions there are optimistic. It seems people find this company undervalued and with a huge upside potential that could soon lead ARW go over the $1 mark.

As several stock researchers point out, Aroway owns highly-prospective projects with current production of 530 boes/day which the corporation intends to raise to a minimum of 600 boes/day by the end of 2011.

Perhaps, these considerations provide only part of the reasons for Monday’s behavior of the stock. A 19.5% rise in the stock price and a volume exceeding nine times the daily average – these are facts not to be so easily forgotten. Besides, the recorded turnover of 1.06M shares is the second largest in the whole company’s trading history.

Aroway_Energy_-_Logo.pngThe performance of ARWJF on the American OTC market also deserves your attention. There, the stock produced a volume record of 314.5 thousand shares, together with a 19% rise in the price.

What is probably disappointing to some traders is that recently Aroway has not officially filed its financial statements. The latest were published on SEDAR in May and were related to the first quarter of 2011. As they show, in the end of this March the company had no more than $522 thousand in cash. Additionally, Aroway reported a net loss of $712.6 thousand for the first quarter of 2011 compared to a net income of $229 thousand for the relevant period in 2010.
Maybe, these figures could spoil a bit the overall positive outlook that the company has at present. No doubt, the company’s managers have a lot to do in the months ahead. Hopefully, they will keep up the good work!