On the CVE market, the stock has pushed 40% up since Monday, and yesterday noted its new high for the last two years at $0.220. The turnover of over 9M shares traded exceeded 15 times the average for the company. This allowed GAX to take the prestigious third place among the most demanded items on the CVE.
Similar peaks occurred on the American OTC market. Yesterday’s trading will be remembered with a new year-high for GAXFF along with a record volume of 375K shares.
This outstanding performance was probably triggered by the announced yesterday final assay results from the company’s drilling campaign at Galahad’s Regcourt gold property. They reveal “notable gold bearing intersections”, as claimed in the release.
The news must have impressed many investors, which explains why Galahad shares were on such great demand during the last session.
As for the future behaviour of the stock, it is not clear for how long the current surge will hold. The financial condition of the company reveals it is in need of more money for the proper financing of its five properties.
Galahad had a net loss of $429K for the third quarter of 2010 which is a rise by 121% in comparison with the same period in 2009. Though the cash and equivalents have jumped to $211K, or by the striking 575% compared to Q3 of 2009, they are obviously insufficient for the successful management of the company’s projects.
As the graphics show, GAX will probably enter the overbought area and it is unclear for how long it is going to stay there. But the bearish gravestone Doji that has been formed on the chart suggests that maybe a decline in the price is about to follow.
