Remember what Dune Energy Inc(OTC:DUNR) did on the stock market back in January? The circumstances might vary, but the stock performance back then and right now is quite similar. The question is, how long would this sudden drop in the share price continue. 
It all started last week. As the first quarterly results for this year were due, trading activity skyrocketed. Yet, the stock price would remain relatively unchanged until the actual results were announced on Thursday. Once the 10-Q was out, the race above $1 started. It would continue for the next few days until yesterday. It seems that yesterday was the end of the hype. The most intense session of this hype was this Wednesday, when the share price dropped from $1.32 to just below $1 per share. Just like January. Back then, the run down the hill continued for a few days from $1.25 to $0.7 per share.
Yet, financial forums overflow with people who are obviously not that worried about this drop. An iHub poster provides an interesting explanation of what happened yesterday – a combination of an inevitably expected drop in the price, preferred shareholders converting shares and the panic associated with raised margins on trading oil futures. It is possible, however, that the catalyst for all this is also not that inspiring after all, in order to sparkle a lasting trend of stock price increase. There is a noticeable increase in the total current assets of the company compared to the end of last year and increase in the revenues compared to the same period in 2010. Nevertheless, there are also the mounting liabilities and the net loss at hand, which amounts to $8.3 million just for the first three months of this year. [BANNER]
Which means it is still mostly caution that should be in place when considering an investment in this company. It is a fact that Dune is in a better financial condition than many of the OTC enterprises out there and there is a solid ground to build on. Yet, as usual, only results in the next quarterly statements would show whether this stock could achieve sustainable growth in price, or short bursts like the current one are what potential shareholders should focus on.
