Yesterday the share price of Clenergen Corp. (PINK:CRGE) jumped up to cross the 50- and 200-day moving averages and to form a bullish pattern on the chart. Along with the moving averages cross and the accumulated volume, a brand new stock promotion will support CRGE today.
Yesterday evening the promoter did not fail to mention the announced by Clenergen yesterday new partnership agreement with a projected income of over $35 million per year, on which the stock closed the session 20% higher at $1.08 for a share. Traders got also reminded about the company’s plans to apply for listing on the NYSE Amex stock exchange. In a previous press release CRGE had mentioned that the application should be completed by the end of the month.
The reminder about the expected news was, of course, not a free service. According to the promoter’s disclosure, a non-controlling third party shareholder has paid $30,000 for the alert. That means CRGE could jump once again today, but also that it could quickly move downwards as the paying party is holding shares which it could sell on the market, leading to a price decline.
CRGE financial condition does not look as promising as its stock chart. In an earlier press release the company addressed its huge working capital deficit, which was over $4 million at the end of January 2011. Clenergen said that it has secured $8 million for working capital needs for capacity expansion.
The company currently operates an 18.0 MW/h biomass power plant in India and has agreements to acquire more plants and intends to expand the current capacity. From its first plant CRGE reported $1.9 million in revenues for the three months ended this January, but also an operating loss of almost half a million dollars and a net loss of $1.3 million.
