Cabo Drilling Corp. (CVE:CBE) (PINK:CBEEF) spiked up breaking the downtrend after the company published significantly improved quarterly financial reports.
CBE stock price gapped up on Friday before running for the big gain of 50%. Since there was no selloff upon opening today it can be assumed the new value will be sticking. The rally was a part of a four day breakout after the CBE’s value moved above 90 cents per share.
During Friday’s session the stock pulled in a trading volume of 2.1 million which was significantly higher than the average 184 thousand. With the recent move the stock price jumped above its 200 day moving average, which now could provide support in case of correction.
The stock price rally has drawn its strength from the fiscal first quarter results on December 23. As of September 30 the company was in a rather favorable position:
- Revenue was $16.9 million, 64.8% higher than last year;
- Net income reached $1.5 million, highly improved compared to 198 thousand last year;
- The management said they retain a high level of demand for drilling services.
The stock price rally is justifiable pretty nicely as this quarter recorded the highest revenue seen by the company to date. Their Canadian division delivered 75% of the revenues.
