Alberta Oilsands Inc. (CVE:AOS) (PINK:AOSDF) new board declared upcoming changes in the company’s business strategy, which cause a price roller coaster on the market.
AOS share price gained 9.7% on Wednesday, but lost half of the gains today. Yesterday the stock moved under an extraordinary trading volume of 743 thousand, which was more than three times heavier than the 90 day average of 242 thousand.
On June 20 Alberta announced changes in their business plan which were forced by a newly former board. The company will attempt to aggregate their shallow conventional oilsands property expecting the reward from optionality value would benefit the shareholders in a period of one to two years.
The company still wants to retain the existing ownership of the property. Avoiding dilution to shareholders as much as possible they intend to seek funding from international energy development groups which hold a lasting relationship with AOS.
Traders should also get more updates on the company’s activities as the new board has prioritized communication with shareholders and thinks the stock might be undervalued because of the limited public exposure.
AOS share price has been stuck near its multiyear low since the beginning of 2012. Traders made used of the small swings in price but never attempted to break above 20 cents per share.
The company’s current market cap of $25.1 million is far below their book value of $70 million.
