Donner Metals Ltd. (CVE:DON) (PINK:DONFF) rallied more than 23% on Tuesday trading volume was 1.45 million more than seven times the average of 209 thousand.
The trading activity increased one day after traders evaluated the company’s recently published quarterly financial report. Donner’s balance sheet improved very significantly over the past half a year as the company pushed forward with their business plans.
- Assets increased 4.4 times to $29.8 million;
- $17 million was added to liabilities under the non-material ‘unearned revenues’ section;
- Total net worth of the business doubled in result and is now over $12.3 million;
- Cut down quarterly net loss to $1.07 million from $1.8 million recorded in the same quarter of 2011;
- Spent $18 million on purchase of new property, which forced $8.9 million worth of sale of common stock to pull off a positive cash flow for the quarter;
- 35.3% stock dilution rate was recorded over a period of one year
The reactive stock price appreciation stopped just before the 200 day MA which could prove to be resistance like. DON also has resistance at around 24.6 cents per share, where one of the previous price spikes ended.
From a broader perspective, the stock is currently in consolidation and thus traders might not commit to this swing up, especially considering that it took one extra day for the stock to react to the fundamental improvements in the first place.
