Recovery Energy, Inc. (OTC:RECV) is a Denver-based independent oil company. Recently the company hasn’t been performing all that well and the price of its stock has followed suit. The last few sessions, however the price of RECV stock has made an attempt to recover.
Yesterday RECV closed at $1.83 – a loss of 1.08% on 215 thousand shares, but still a bounce off of the $1.63 low from Aug. 22.[BANNER]
The company recently published its 10-Q for the second quarter of 2011, and the numbers in it may have something to do with the following two days of closing in the red. RECV reported operating and net losses yet again. The company’s working capital has decreased dramatically to about $700 thousand, and there has been some moderate dilution.
Some shareholders don’t seem pleased with this performance, and today there is a prospectus filed with the SEC, related to the sale of approximately 49.2 million shares of common stock of RECV by shareholders, and about 4.4 million shares which may be offered by the company to the holders of some of the company’s debentures.
This will hardly help the attempted recovery of the stock price. It is obvious RECV is facing some tough times, and it will need to somehow better its performance if it is to recover its price. This doesn’t mean a skilled investor couldn’t make some quick profit even at a time like this. In early March this year, RECV shares trade around $3.50 for some time.
