Yesterday, DRV moved 5.4% up on a turnover of over 2.7M shares. It beats five times the average trading activity on the CVE market. The stock ended the session at $0.39, noting a day-high of $0.43. This is very near to the 52-week peak of $0.435 set in early January. In case the shares’ advance goes on, a new price-high might soon be recorded.
The stock is ascending on the American OTC market too, where the progress is even more notable. We already saw a new high yesterday. DUVNF climbed to $0.4175, which was also the closing price for the day and a price record for the last two years. The shares formed a gap-up from the previous day and soared almost 13% as a long white Marubozu was formed on the chart.
Duran Ventures is a Canadian mineral exploration company. Its main focus is the exploration and development of large tonnage mineral deposits in Peru. Duran’s flagship project is the 100% owned Aguila Copper-Molybdenum Porphyry property.
As Duran has not issued any developments over the last two weeks, there should be some other explanation for the surge of the stock. Maybe, some of the company’s directors made up their minds to exercise the options that Duran granted them in mid-March.
Insider activity is, to some extent, “responsible” for the behavior of the shares and the increased trading activity. As official data indicate, Mr. Del Campo – one of the company’s directors, decided to exercise some of the warrants he owns.
The future stock performance is not easy to predict. Positive events from the previous month could, possibly, support the shares for a rise. The latest news released by Duran was from late March. The company announced the commence of a diamond drilling program at Aguila and informed to have received a Category 2 Drill permit for the project by the Peruvian Ministry of Energy and Mines. Additionally, Duran was financially strengthened with a $7.4M bought deal financing completed in January.
The negative facts about the company: Duran recorded a net loss of $0.38M for the Q3 of 2010; the financial reports for the last quarter of 2010 have not been issued yet and seem to be a little late; the stock dilution has increased greatly – within one year the average number of outstanding shares has risen from 73.7M to 116.7M, or by 58%.
In view of all mentioned so far, it is hard to say whether the surge of the stock will continue on the Canadian Market. Technically speaking, a bearish Shooting Star Pattern was formed on the chart yesterday. However, its reliability is low and definitely requires a confirmation.
