Yesterday, Originoil Inc. (OTC:OOIL) went up for the third time in a row, which happened for the first time since Jul. 22.
Needless to say, the highest movement (out of the last three) occurred during the latest session that took place on Oct. 11. Fueled by an official press release with a very optimistic headline, OOIL stock gained 10% in value, ultimately closing at $2.20 per share. Which, by the way, is far below the current 52-week high achieved in early 2011 when OOIL shares were traded around the $7.50 level. The volume, on the other hand, also set a new eight-week record as more than 73 thousand common shares of OOIL stock changed hands.
The root of this positive market performance might be due to the press release which popped up yesterday. Bearing a rather optimistic headline, it led investors to believe that OOIL had been designated by the Forbes magazine itself as one of the “11 Next-Generation Commodity Names”. However, if you read the whole news, you will quickly understand that this piece of advice had been given by an investment educator who had taken part in a Forbes Online interview.
Originoil Inc. specializes in developing a novel technology designed to convert algae into the ultimate source for the commercial production of fuel, chemicals and foods. Provided that OOIL really succeeds in coming up with a fully working technology, it will make algae an equal replacement for petroleum, hence the high potential this company has.
OOIL’s latest financial reports indicate that the company is still in the red. Nevertheless, its net losses for the last several quarters have been kept at a consistent level, which means that a commercial breakthrough could easily not only reduce the losses, but also generate significant income. The only problem for the time being is that there is actually no guarantee when exactly such a breakthrough will take place and if it will become reality at all.
