Although SRCH still has no economic operations after ten years of exploration and of searching the right business model, their stock price is surging up over the last month. The only news from the company since April has been that one of its directors will now sell his holding at current market prices. It is not known if that has encouraged traders, but three weeks after the relevant 8-k, SRCH added yesterday another 22.55% and closed at $1.25 for a share.
The technical indicators suggest that the rise can persist, and the lack of resistances back to March are also a positive signal. But the suddenly improved popularity of SRCH seems weird in any case, as no improvement in the fundamentals has been made. At the time when SRCH gaining period started, two well-known stock promoting websites alerted SRCH’s price momentum to traders. Subsequently, the initiated coverage by the “independent” researcher Emerging Stock Report was announced.
Since that time, SRCH stock has gained 318% in market value. The latest press release by the company was made in April and announced that the company was at that time about to commence operations on its Clarkdale Slag Project in north-central Arizona. Though, that does not sound plausible. According to the latest 10-Q from the middle of August, the company has still not completed all the feasibility studies on that project and is still not sure how exactly the operations will be conducted.
Final results are supposed to come out at the end of October.
SRCH has no revenues from operations since its inception ten years ago and has accumulated an operational loss of over $25 million, whereby the company has had more general and administrative costs than it has spent on mineral exploration and evaluation. The raising of equity capital has been more successful, however. SRCH has sold stocks for nearly $60 million since the company was created, the number of common shares currently outstanding being 118.81 million.
