Sometimes, it is maybe good to invest in the stock of a company with no news. This was the case with Catalyst Paper Corp. (TSE:CTL), (PINK:CTLUF) stock these days. Since this Tuesday and up to yesterday, CTL shares gained 41%.
At the same time, the latest official announcement concerning some really substantial for the company developments is from the end of this July. Then, Catalyst Paper Corp. released its not so optimistic financial results for the second quarter of 2010, the change in the company’s management body, the planned Elk Falls mill permanent closing in September and the closing of the Paper Recycling Division.
The reasons for such restructuring were explained with the weak market for commodity paper grades and with the company’s uncompetitive cost structure.
From the time of the above mentioned hot summer shower for investors, workers and company, not even a single sentence about the future plans of CTL has been heard by the public.
Looks like the not yet confirmed information about the third quarter earnings release, planned for November 2, 2010, made some impatient investors happy with the fact that at least something will be done to make them aware of the last developments of the company.
And CTL stock rush started. Does the unexpected upward direction of the share price show intentions to become a trend?!
You may probably ask, based on what information? Here are some thoughts, evoked by the lack of official information.
CTL stock is surging maybe just because the company’s chairman Benjamin Duster IV, the former chairman of Algoma Steel, has 20 years of Wall Street experience and this encourages investors to buy the stock.
[BANNER]
Up to the date of the planned earnings release, CTL stock should jump up on the latest summer news just because after the planned events the shares will need some space to pull back. Sometimes, it is good to bank the gains from some speculative bids on a stock.
And… sometimes, it is good to buy a company’s shares on time, since after months it may be too late to buy them that low.
Unfortunately, in CTL SEDAR filings no official reason can be found for its stock to jump up these days for the last mentioned here reason.
