Traders took a better look at Bowood Energy Inc. (CVE:BWD) (PINK:ROAOF) last Friday but the commotion didn’t turn into anything worthwhile yet.
BWD generated a significant trading volume of 1.5 million over Friday’s session last week but there was no follow up to this action and the price channel stayed intact. The stock got the buying pressure at random, mostly as an effect of global markets going down and traders looking for safe havens. Since the breakout attempt wasn’t successful the price now has a good chance of going down to the lower end of its channel when swing traders try to take the opportunity
The company currently holds a $110 million market cap which is backed by a net tangible worth of $48 million. The business has a working capital of $2.3 million and stayed on flat revenues over the last quarter compared to Q2 2010.
The current market cap appears natural for an exploration stage company which has limited revenues and sits mostly in losses. Any significant price move up would require a preceding material event like boost in production.
Bowood’s production is based in Alberta and is composed of around 75% natural gas and 25% light oil and NGLs. Key areas of operation are based in Armada and MacIntyre/Magrath in Alberta. BWD owns approximately 100 thousand acres in the Southern Alberta Bakken
Fairway.
