The managers of OPTI Canada Inc. did not lose their hope. Even when the company, likewise the shares, looked to be on the verge of collapse. During the last session, the stock (TSE:OPC), (PINK:OPCDF) suddenly made a big jump – this time in the right direction. The shares proved they have the power to get out of the bottom where they have been staying over the last two months.
On Friday, OPC soared more than 36%, finishing the day at $0.32. This looked almost like a miracle. The stock has never made such a percentage gain over the last six months. Actually it has been falling relentlessly over the last 1.5 years. Back in November 2009, OPC was traded at $2.18 per share; at present, it is worth 85% less on the Toronto Stock Exchange (TSE). In early February, the crisis made the shares plunge to an all-time low of $0.19. Now they have at least managed to bounce off the bottom.
For how long? This is not an easy question to answer. Despite the positive move, there is no guarantee the stock could continue its rebound. As we know from an early article, the company is heavily-leveraged with a very large debt of $2,640M. Besides, the oil-sand production from the Long Lake project has long been unsatisfactory.
Nevertheless, OPTI should not lose hope. Last Friday’s rise showed that chances for revival exist. Moreover, the progress of the stock was reinforced by the huge turnover that surpassed 4.2M shares.
In mid-March, the company announced that Long Lake bitumen production was beginning to normalize and ramped up to 29,300 bbl/d from the January output 27,000 barrels of bitumen per day. Finally, the price of oil has been steadily advancing over the last month, perhaps OPTI could profit from this situation.
