Traders rushed to buy Reliable Energy Ltd. (CVE:REL) (PINK:RELZF) after the company announced improved quarterly results, along with better production guidance. Their stock rating was, in turn, upgraded by one analyst.
REL stock price gapped up 6.5% on Thursday under a serious trading volume of nearly 1.6 million shares, way above the average 328 thousand.
The price recently passed above the 50-day moving average under a steadily increasing trading volume, which is promising for longs. The 50-day average also appears as if it might turn up in the coming couple of sessions, which is another strong bullish sign.
The buying pressure increased when Reliable Energy provided an update on its operations on November, 29. The company reported a 46% increase in average oil production on a quarter-over-quarter basis.
One day earlier, Reliable also reported the third quarter results, along with the revised guidance. Compared year-over-year:
- quarterly sales have more than doubled to $5.76 million;
- the bottom line turned black with $1.66 million reported;
- cash flow was solid $3.83 million;
- total assets worth increased 32.8% to $53.2 million;
- the company now has a working capital deficiency of $11.18 million.
Reliable also raised their annual production guidance for 2011 to 730 bbls/d with fiscal 2011 exit expected at a minimum of 1,050 bbls/d.
After the publication of the updates, Acumen Capital analyst raised the company’s stock rating to a speculative buy, which should continue to induce positive expectations for its performance.
