Since Tuesday, RLM has advanced by 39%, closing yesterday at $0.66. During the session more than 1.7M shares were traded, which exceeds four times the average turnover. Now the stock has recovered some of its lost ground. In early-April, RLM was worth about $0.90.
Perhaps, the Friday news also contributed to the progress of the shares. In a release from yesterday, Realm declared its intention to initiate a strategic review of its interests in Poland. The company will examine strategic alternatives to determine which one might result in superior value for stockholders. Earlier this month, Realm informed about commencing exploration activities in Poland.
The solid financial condition of the corporation is another positive factor that might come in support of the stock performance. In the end of 2010, the company reported a cash position of $25.4M and a working capital of $24.5M.
There are, however, negative factors too. They might hurdle the future progress of the shares. Realm continues to incur significant losses which is normal for a company in the exploration stage. Nevertheless, a loss of over $5.1M for 2010 still looks a bit disturbing.
In second place, we see a high increase in the stock dilution. The average number of outstanding common shares jumped from $12M in 2009 to $49M in 2010, or by 309%.
From a technical point of view, we see that RLM closed above the upper Bollinger Band. This is considered a bullish sign by some analysts and researchers.
