Quetzal Energy Ltd. (CVE:QEI) (PINK:QUEZF) stock ended up at an important support level after some shareholders apparently jumped the ship and forced a gap down in price on Thursday.
Share price lost around 13% over the last two trading sessions and extended the downtrend to its limits. It stopped just at the support at 10 cents, but the trading was vague. Volume wasn’t actually meaningful on the way down, so this could provide a favorable swing trade opportunity. The current price action already shows boundaries of a channel between 10 and 16 cents.
The gapping move down indicated panic among traders and shareholders and was possibly a continued reaction to the annual financial results for the year end 2010, that were announced on May 3.
The results were mixed, thus the real progress of Quetzal business ventures remains unclear:
• The only revenues are from interest on investments;
• Had $3.8 million in cash, 30% less than by the end of 2009;
• 71% increased value of properties;
• 75% increase in liabilities;
• Deficit increased 3 times to $12.4 million;
• Net loss increased 49% to 5.6 million.
