The shares of Enablence Technologies Inc. (CVE:ENA) are on the right move again. In the beginning of this month, after a long crisis they had slipped to an all-time low of $0.045. During the last several days, however, the stock seems to have found new hope for life.
ENA began rising some ten days ago, and managed to double its value within this period climbing from $0.05 to yesterday’s close of $0.10 per share. The stock’s price was up a third compared to Monday’s close, and also marked a one month high.
The turnover yesterday was quite satisfactory too – about 5.42M shares changed hands. This is over 8 times the average and notes a one-month high for the volume too.
Are the bad days for the company’s stock over? Not necessarily. In the end of August, Enablence declared its intention to sell part of its business, namely Trident7 Universal Access Platform, to Aurora Networks Inc. for the price of $5.1M. In addition, the corporation decided to sell its MAGNUM FX product line by divesting certain assets and transferring certain warranty obligations and liabilities to FX Support, LLC. As announced last Thursday, both of these transaction sales were completed successfully.
Obviously, the purpose of Enablence is to get rid of its unprofitable product lines and concentrate on its core components business. Still, as we see in the stock forums’ discussions, there are investors who do no feel so enthusiastic about a company selling its business and assets.
Nevertheless, the corporation is, for the time being, financially stable. In the end of this June, Enablence had $11.5M in cash. The fore-mentioned sales deals have provided the company with additional funds. Still, the hard times are probably yet ahead. Enablence will have to secure enough money to be able to pay the $10M subordinated notes that come due in the middle of 2012.
