Four months of almost constant fall – so gloomy looks the chart that represents the company’s stock performance on the TSX Venture Echange (CVE). Fortunately, the session yesterday gave, possibly, indications about a positive change.
For a long time we had not seen such a huge investors’ interest towards the shares of SmartCool Systems Inc. (CVE:SSC), (PINK:SSCF) on the Canadian market. Thursday’s volume exceeded 1M shares, which is a record for the last 4.5 years and the second largest turnover in the company’s trading history.
The price made an impressive rise too, advancing 20% up to finish the day at $0.21. This does not seem so impressive, however, when we look again at the long-term behavior of SSC. The current progress comes precisely two days after the shares had hit a 22-month low of $0.16.
Besides, it is still too early to say that this bounce-up of the stock marks the beginning of a long-lasting positive trend. The latest SmartCool financial statements throw further doubts about favorable share moves in the future.
- Current liabilities totalling $3.615M that outweighed the current assets of $2.95M. The result – a working capital deficiency of approximately $660 thousand;
- A net loss of $1.83M for the six months ended June 30, 2011. This is an 84% increase over the loss for the relevant 2010 period.
Given these facts, it is all but easy to foretell a positive development for SmartCool on the stock markets. Here we might note that yesterday on the American OTC market SSCFF marked a 52-week low of $0.195.
The corporation and its subsidiaries are principally devoted to acquiring and marketing energy saving technologies for commercial and retail businesses. SmartCool makes earnings from the sale and installation of Energy Savings Modules (ESMTM & ECO3TM) to customers. These are technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems.
