Last week turned out to be one of the most successful ones for Homeland Resources Ltd. (PINK:HMLA). From the five trading sessions, HMLA stock registered a positive price movement in four of them and a neutral performance in one session. The biggest surge took place last Friday, when HMLA gained 23% in value to close at an April-high level of $0.27. The positive run was established on a turnover of 92 thousand. The latter is both considerably higher than the average volume and nowhere near the all-time high of 3.8 million set three weeks ago.
Two factors appear to be responsible for the recent market behaviour of HMLA stock – never-ending promotions and bombastic press releases. On the one hand, the company’s stock ended up being one of the most heavily advertised penny stocks in March. However, the promotional wave worth at least $78K has now extended well into April and shows no signs of slowing down. On the other hand, HMLA issued a corporate update on Apr. 15, informing investors that it had gone halfway to completing its 3D seismic program. The latter is being carried out on an Oklahoma-based property which is believed to have rich deposits of oil and gas.
Not long ago, HMLA reported daily average flow rates of 405 barrels of oil and 100 mcf of natural gas on another property. As it seems, it all adds up for Homeland Resources, Inc.
HMLA claims to be a company in its development stage and is currently focused not only on seismic exploration programs, but also on drilling initiatives. Being a regular SEC filer, HMLA occupies one of the premier OTC market tiers, namely the OTCQB. According to its latest 10-Q report covering the quarter ended Jan. 31, the company has:
- incurred a negative working capital of $200 thousand;
- generated $68K in oil and gas revenue;
- accrued a three-month net income in excess of $28 thousand, thus reducing the six-month net loss to $33K.
HMLA has reported more than $830 thousand in liabilities. 99% of this amount is due to accounts and notes payable. In connection therewith, the company has already completely exhausted its authorized preferred stock of 250 million. As far as the authorized common stock is concerned, HMLA has already issued 88% of it, i.e 440 million.
