Selectcore Ltd. (CVE:SCG) (PINK:SLXXF) continues the streak of solid gains with the stock price rallying up for the fifth consecutive day.
Stock price is up 24% early in the morning today, further extending the 30% gain from Friday. Trading volume is 21.67 million, nearly ten times the average of 2.34 million. The rally began when the company announced improved financials last week.
More recent news also added to the extent of the current rally. Selectcore announced on Thursday that the company received approval from the US patent office to launch their pre-paid Iridium MasterCard.
The product is expected to be available in the US by the third quarter of this year. The new card requires no bank account or credit check and can be re-loaded with an up to $5000 balance. Similar cards are already available in Canada.
Despite active trading and very positive sentiment on the market, the stock price might be overheating. The market cap went up to nearly $73 million with this morning’s push, which is hardly justifiable by the fundamental background.
Even with improvement in financials, the current situation is not good enough to sustain such a rapid price growth for much longer. The current situation doesn’t look like a healthy uptrend and thus the upcoming corrections might be large scale as well.
