Dana Resources (PINK:DANR) stock added over 130% to its value after rumors on undervaluation got out. But the price didn’t hold too well, as some selling pressure occurred, possibly coming from certain insiders selling the shares obtained under the company’s stock compensation plan in March, 2010.40 million shares issued under the stock compensation plan in late March this year could have hit the market on the recent rally, as the unusually high trading volume was close to the number of shares given away.
Dana holds several precious metals containing properties in Peru. According to the estimates, the Collota Deposit could contain over 1.1 million ounces of gold, which translates into a hefty income under the current prices.[BANNER]
Apart from the scarce information given through press releases, the pink sheets listed company doesn’t hold enough recorded capital to sustain the current market capitalization. A possible start of full scale exploitation of the mining properties is obstructed by the lack of funds as well.
The company foresees an up to $550 million net income from the processing of the oxide and sulphide zones of the Collota gold deposit. The plans were announced on March 1, 2010 and no follow up updates were given to date.
The company is late with their first quarter 10-Q filling and it is unclear whether they will file it at all.
