Passport Potash Inc. (CVE:PPI) (PINK:PPRTF) stock price flew up 20.5% after the company announced its CEO, Joshua Bleak, will appear on Bloomberg TV show “Taking Stock with Pimm Fox”.Since no real development took place, it can be assumed the advertising will have its effect for a limited period of time. Initial trading upon news announcement created a significant wave of trading. The price action also adhered to the technical conditions – the stock bounced support at 75 cents.
The interview didn’t contain much revelation, so as far as the informed traders are concerned, this advertisement will only work to inform the general public of the company’s existence and nothing more.
The company has recently secured $7.1 million funding at the cost of 36% stock dilution to shareholders. While it gave a temporary boost to the company’s valuation, the stock price has already corrected down several times in a volatile manner.
The recent dilution should spurt the market cap to $80 million at the price of 76 cents per share. This is not adequate for a company with roughly $10 million in net assets and no revenues. Passport is still in exploration stage, meaning the company’s market value should closely correlate with the value of the underlying assets as there is yet no way for them to increase the worth of business internally.
