During yesterday’s trading session, Alamo Energy Corp (OTC:ALME) stock proved again that it can become a gainer contrary to the company’s disclosures.If investors of ALME could formally give last week the name “devoted to gains on the company’s material interests”, these days seem to come the time for the speculative gains from ALME shares.
More than two weeks ago, when the company announced its agreement with Berry Resources, Inc., the event was not able to reflect on the share price.
Then, ALME released the purchase of 6.5 units of the Berry Prospect, which includes two wells to be drilled in North Central, Pickett County, Tennessee, in exchange for ALME’s cash payment of $97,500.
On the same day, ALME stock returned 5.26% back. One day after the release, the shares surged exactly 10%, which was supported also by speculative interest.
Last Tuesday, parallel to the company’s notification of inability to timely file Form 10-Q or 10-QSB, the next surprising ALME surge took place.
This was surely not investors’ reaction to the delay notification and the 8.14% jump of the share price could be explained with the still echoing Berry agreement.
Wednesday was another day full with pleasant surprises. ALME added the next 17.14% to its value, this time on a heavy volume. And this time only the modest 39% of the total volume belonged to shorters. The culmination of the shorters’ presence was yesterday with 69% shorting volume from the total volume traded. ALME continued to soar and the shares closed at $1.22 with a 10.91% price increase.[BANNER]
This time, it was maybe not the echo of the company’s material event, but the announced financials that resulted in the share price pull up. As opposed to the admirable upward share price direction, ALME reported gross profit unable to cover the operating expenses, net loss of $(0.02) per share and cash of less than $158 K at the end of July.
Here raises also the question, can ALME stock surge even more if in addition to the reported financials the company announced also the receipt of about $1,484,000 from the borrowed funds under the $2,000,000 financing agreement from November, 2009?
