Connacher Oil and Gas Limited (TSE:CLL) (PINK:CLLZF) hesitates to confirm the end of its short-term price uptrend as traders remain hopeful about the acquisition proposal that is apparently on the table.
CLL price failed to pass above the 200-day moving average, which currently stands at 0.93, and slid down for the past two sessions. The stock was uptrending without any corrections since late November and had recently overextended with a nearly 50% spurt up on December 8.
The company commented that their share price jumped in accordance to the recent disclosures. Connacher recently shared with the capital market their improved liquidity and business plans for ordinary and joint venture initiatives. Furthermore, the company believes that a recent more than 50% increase in bitumen price also had traders excited.
The company also disclosed to have received an acquisition proposal which remains subject to negotiation and further due diligence. No formal proposition has been made, though.
Clearly as a result of this unofficial acquisition offer, the company was also approached by a major equity holder West Face Capital Inc. with encouragement to consider strategic alternatives with the aim to improve shareholders worth.
Since there was no official proposal, the market will likely put this stock into consolidation until further notice from the company. Though, some correction might also be in line considering the top of the mountain position the stock’s currently in.
