Until yesterday, a lot of investors had given up their hopes of striking a fortune with the stock of Grid Petroleum Corp (OTC:GRPR). Because, as seen on the chart, GRPR had been on a steady decline for the last six months, showing no signs of going up. Not any more, though.
To anybody’s amazement, GRPR skyrocketed during the latest trading session that took place yesterday. Not only did GRPR soar a staggering 243.75%, but it also scored a record-breaking volume spike with more than 15 million shares changing hands.
As it seems, all it took GRPR stock to go crazy on the market was a press release providing updates on the development of the San Joaquin Basin. According to the release, the initial technical study and the drill site selection have been scheduled for early-October. In case the basin turns out to be oil-rich, GRPR’s giant surge could easily turn into a continual trend.
GRPR closed the second calendar quarter of 2011 with:
- $9K in cash;
- negative working capital in excess of $450 thousand;
- zero revenue and a quarterly net loss of $60 thousand.
The company has estimated its Oil & Gas properties at $7.8 million. Before buying more GRPR stock, investors should not forget the fact that the company has so far only issued 135 million out of 1.5 billion shares of A/S. Therefore, in the light of the low cash reserves, managers would hardly surprise anyone if they resort to dilution in order to raise additional capital.
