In terms of chart performance for the last six months, Deep Down, Inc. (OTC:DPDW) is nowhere near the top penny stocks. Last Friday, however, investors traded so heavily with DPDW stock that it scored a new six-month record.
Closing at a two-week high of $0.064 per share, DPDW went up 6.7% to end last week on a high note. Moreover, the positive price movement was achieved notwithstanding the huge turnover in excess of 2 million. While the latter turned out to be the highest volume of DPDW stock traded within one trading session for the last 26 weeks, it did not adversely affect the value of the stock.
On Nov. 10, the oilfield services company proudly announced selected numbers taken from its financial results for the third quarter of 2011. According to the press release, DPDW has registered a positive net result of more than $600 thousand. Not only is it substantially higher than the $222 thousand earned in Q2, but also a giant improvement over the negative net result incurred in the same quarter of 2010. Yet, it was not until the next day that investors reacted to the news, hence the big Friday volume.
The newly submitted 10-Q form also reveals that, as of Sep. 30, DPDW had:
- cash reserves in excess of $2.5 million;
- negative working capital of $2.45 million;
- $8.6 million in revenues vs. $10.4 million a/o Sep. 30, 2010.
Yet, it was not until the next day that investors reacted to the news, hence the big Friday volume. What follows next will depend on what DPDW’s management has in store for stockholders.
